Volume — how much is being traded

Volume counts shares changing hands, not how loud the hype is.

Volume means activity

Trading volume is the number of shares traded during a period. High volume means lots of shares changed hands; low volume means fewer did.

It can add context

A big price move with unusually high volume may show that many traders reacted. It still does not tell you whether the move will last or which side is right.

Liquidity matters too

Heavily traded investments are often easier to buy or sell near the displayed price. Thinly traded ones can have bigger gaps between buyers and sellers.

Continue with Stocks lessons.

For education only. Quoliv uses fake money and does not provide personal financial advice.