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Retail Foreign Exchange Margin Trading in Japan:
An Analysis from the Developments in 2022

September 13, 2023
Financial Markets Department

Foreign exchange (FX) margin trading by Japanese retail investors hit a record high in 2022, unprecedentedly exceeding 10 quadrillion yen. While outlining the mechanism of retail FX margin trading, this paper summarizes factors behind the recent surge in retail FX margin trading and changes in investment patterns of Japanese retail investors. In addition, an analysis is conducted on how retail FX margin trading impacts the global and Japan's FX markets. Continued monitoring of investment patterns of retail FX margin traders is integral to better understanding the developments in FX markets.


The Bank of Japan Review Series is published by the Bank to explain recent economic and financial topics for a wide range of readers. This report, 2023-E-7, is a translation of the Japanese original, 2023-J-6, published in June 2023. Views expressed are those of the authors and do not necessarily reflect those of the Bank. If you have any comments or questions, please contact, Financial Markets Department (E-mail :