What is trade volume ?

Last updated on 

Trading volume on the market is calculated as the total number of trades in a chosen trading period.

A large trading volume indicates a high interest of market participants in this financial instrument. The higher the turnover, the higher the liquidity of this asset

Professional traders and financial market analysts consider trading volume data as one of the priority indicators. If the trading volume decreases — respectively, the degree of liquidity imbalance is weak, which means that price fluctuations will be insignificant, the trend (growth or decline in price) is at the final stage, and the interest in trades is low.

If the trading volume increases, it means that there is a high interest in this asset. Large transactions of participants can lead to an imbalance of supply and demand.

Trade volume of the GB Merchants collection