Cash market volumes, margin trading book shrink as traders turn cautious

Fragile sentiment, regulatory changes behind 45% cash volume drop, 16% margin hit: Analysts

Weak market sentiment has driven a steady decline in cash market volumes and margin trading books over the past nine months. Cash market volumes have plummeted by 45 per cent from their peak in June 2024, while the margin book — used by traders to leverage stock purchases — has shrunk by 16 per cent since its high in September 2024.

 

Analysts attribute the downturn to a mix of fragile sentiment and regulatory changes, which have also curbed options premium volumes.

 

Experts warn that a shrinking margin book and reduced leverage could raise concerns over market liquidity and investor participation.