I'm trying to grasp the concept of volume in trading. Could someone explain how to interpret and understand trading volume, and its significance in the market?
6 answers
Valentino
Sat Nov 16 2024
This metric provides valuable insights into the market's activity and the level of interest in a particular stock.
Valentino
Sat Nov 16 2024
For futures and options, the concept of volume differs slightly. Instead of measuring the number of shares, it is based on the number of contracts that have been traded.
benjamin_cole_nurse
Sat Nov 16 2024
Each contract represents a standardized agreement to buy or sell an underlying asset at a future date for a fixed price.
SeoulSerenitySeeker
Sat Nov 16 2024
In the stock market, volume is a crucial metric that measures the number of shares traded over a specific period.
DongdaemunTrendsetter
Sat Nov 16 2024
Investors and day traders often rely on volume to assess the liquidity of a market. High volume typically indicates that a stock or contract is actively traded and can be bought or sold quickly without significant price movements.