Volume Of Trade, investopedia

Increased volume typically shows that something has happened with the stock, such as a news release or active traders that have become worried or euphoric about the stock's potential. Legal implications edit, in the United States, the Rule 144 of the Securities Act of 1933 restricts the buying or selling of an amount of a security that exceed a certain fraction of its average trading volume. High volume accompanied by sharp price movements against the trend signifies the trend is weakening, and/or susceptible to a reversal. When securities are more actively traded, their trade volume is high, and when securities are less actively traded, their trade volume is low. Volume of trade or trade volume is measured on stocks, bonds, options contracts, futures contracts and all types of commodities.

Stock, volume, indicator: Unusual Stock, trading Volume

What to Look For in a Day Trading Stock ). 3, for institutional investors who wish to sell a large number of shares of a certain stock, lower liquidity will force them to sell the stock slowly over a longer period of time, to avoid losses due to slippage. An extreme volume spike where volume trends up way more than normal, like 5 to 10 times or more than average volume for that time or period, for example, could indicate the end of a trend. The Final Word, volume can offer useful information when day trading. Sellers have more control when the price gets pushed lower.

Volume, trading Volume

Volume represents the total number of shares traded for a given timeframe. . A trade volume reported at the end of the day is also an estimate. Trading decisions should be based on price movements first and foremost, as price movements determine profits and losses. Volume tells investors about the market's activity and liquidity.

Day, trading, based on, buying Volume and Selling Volume

When someone buys shares at the current offer price, it shows that someone desires the stock and represents buying volume. Traders follow the average daily trading volume of a security over short-term and longer-term periods when making decisions on trade timing.

Trading Volume, is Rising and Depth Is Improving in the

The trade volume during a large price increase or decrease is often important for traders as high volumes with price changes can indicate specific trading catalysts. The transactions are measured on stocks, bonds, options contracts, futures contracts and commodities. If most of the volume takes place at the bid price then the price will move lower and the increased volume shows that sellers have the motivation to get out of the stock. Related Terms, most Viewed, browse Definitions by Letter: #. The bid represents the highest advertised price buyers will buy.