In finance, volume refers to the number of shares or contracts that have been traded in a security, such as a stock, bond, or commodity, over a period of time. Volume can be measured in terms of the number of shares traded, or in terms of the dollar value of the shares traded.
Volume is considered an important indicator of market activity and liquidity. High volume indicates that there is a lot of interest in a security, and that it is being actively traded. Low volume indicates that there is less interest in the security, and that it is not being actively traded.
Volume is often used as a tool for traders, investors, and analysts to measure the level of interest in a security, to identify trends and patterns in the market, and to make buy and sell decisions. High volume can indicate a high level of interest in a security, and low volume can indicate a low level of interest in a security.
It’s important to note that volume can be affected by market conditions, news events, and other factors, and that it can vary over time. Additionally, volume can be affected by liquidity, and securities with low trading volume can be more volatile than securities with high trading volume.