- What does volume mean in trading?
- What is volume in the stock market?
- What Does Stock Volume Shows?
Volume in trading means the total number of shares that are traded for security. However, it can be determined by the type of security traded during a trading day. The trade volume is measured on futures contracts, bonds, stocks, and several other commodities.
Volume is an indicator that means the total number of shares that have been bought or sold in a specific period of time or during the trading day. It will also involve the buying and selling of every share during the specific time period.
The stock volume shows that activity has taken its position in a stock market. Thus, whether an investor buys or sells a share, all the activity is recorded in the volume metric.
Final Thoughts
Volume in the share market acts as a helpful tool for several traders and investors. Several investors who are investing in mutual funds choose stocks that have high volume.
However, when it comes to intra-day traders, they also look for stocks with high trade volumes because they square off their position in a shorter period.
There are many essential factors apart from a volume that one should look at while investing in stocks. A proper decision and keeping all the major factors in mind will help several investors to accumulate long-term profit and build long-term wealth creation.
