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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
How many shares are bought and sold in a day. High volume = lots of trading.
Why It Matters
Volume tells you how much interest a stock is getting. Apple trades 50+ million shares daily; a small company might trade 10,000. High volume on a price move means conviction; low volume suggests the move might not last. A stock jumping 20% on no volume is suspicious; jumping 20% on 10x normal volume is meaningful.
Key Points
- Average daily volume is your baseline - compare today's volume to see if something unusual is happening
- Volume spikes often precede or accompany big news (earnings, acquisitions, scandals)
- Low volume = harder to buy/sell without affecting price; high volume = easy to trade
Related Terms
Common Questions
How many shares are bought and sold in a day. High volume = lots of trading. Volume tells you how much interest a stock is getting. Apple trades 50+ million shares daily; a small company might trade 10,000.
Volume tells you how much interest a stock is getting. Apple trades 50+ million shares daily; a small company might trade 10,000. High volume on a price move means conviction; low volume suggests the move might not last. A stock jumping 20% on no volume is suspicious; jumping 20% on 10x normal volume is meaningful.
Average daily volume is your baseline - compare today's volume to see if something unusual is happening
Volume spikes often precede or accompany big news (earnings, acquisitions, scandals)
Low volume = harder to buy/sell without affecting price; high volume = easy to trade