Glossary

Trading volume

The number of shares that changed hands in a given period, usually one day.

In plain English

Every share sold is a share bought, so volume counts transactions, not buyers or sellers. A stock that normally trades 2 million shares a day and suddenly trades 6 million is having a busy day.

Uncle Gary explains

Volume is the noise level at the family party. Aunt Linda believes a loud party is a good party. It's also loud when Uncle Gary and Kevin start arguing about crypto, which is not a good party.

Why it matters for your money

Many traders believe price moves on heavy volume are more reliable. In our test of three classic volume rules, volume added nothing to what the price already said.

Where we tested it

Related terms

All glossary terms. Educational content, not financial advice.