Trading volume

Trading volume refers to the total number of shares, contracts, or units of a financial asset that are bought and sold within a specific period, typically a day. It indicates how active or liquid a market is; higher volume suggests more trader interest and easier transactions, potentially leading to more reliable price movements. Conversely, low volume may point to limited interest, possibly causing price volatility. Traders and investors use volume alongside price data to gauge market strength, confirm trends, and make informed decisions about buying or selling assets.