Okuzeka
Investing & the Stock Market vocabulary · Orders & Trading

Trading volume

Meaning in investing & the stock market, with examples

/ˈtreɪdɪŋ ˌvɑːljuːm/nounCore term

In investing & the stock market, trading volume means: The number of shares or contracts traded, or their total value, during a given period such as one day.

In Turkish: işlem hacmi, hacim

How it is used

Shown on every trading screen. Traders watch whether a price move happens on high or low trading volume; heavy volume makes a move more meaningful. News reports say trading volume was thin, light, heavy or above average. Often just 'volume'.

Example sentences

  1. Trading volume was unusually light ahead of the holiday.

  2. The breakout came on heavy trading volume, which made traders more confident.

Common collocations

  • daily trading volume
  • heavy trading volume
  • thin trading volume
  • average volume
  • liquidityHow easily an asset can be bought or sold quickly without a big change in its price. A liquid market has many buyers and sellers.
  • technical analysisA way of studying past prices and trading volume on charts to identify trends and patterns that traders use to time their buying and selling.
  • bid-ask spreadThe difference between the highest price a buyer is offering (the bid) and the lowest price a seller will accept (the ask) for a security at a given moment.
  • day tradingBuying and selling securities within the same trading day, trying to profit from small price moves and closing all positions before the market closes.

More terms: Orders & Trading

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This page explains English vocabulary for learners. It is not financial advice.