What Is Trading Volume in the Stock Market? (Beginner’s Guide)
When you look at a stock chart, you usually see price moving up and down. But there is another important indicator that traders always watch — trading volume . Volume helps investors understand how strong a price move really is . In simple words, volume tells us how many shares were actually traded in the market . What Is Trading Volume? Trading volume refers to the total number of shares traded during a specific time period . This period can be: 1 minute 1 hour 1 trading day 1 week Every time a buyer and a seller agree on a price and complete a transaction, that trade adds to the total volume. Example If 1,000 shares of a company are bought and sold during the day, the daily trading volume is 1,000 shares . Most trading platforms display volume as bars below the price chart . Why Volume Is Important Volume helps investors understand whether a price movement is strong or weak . Price Move With High Volume If a stock price rises and volume is also high, it ...