DiscoverLearn To Trade Stocks and OptionsWhat is Trading “Volume”? (Trader 101)
What is Trading “Volume”? (Trader 101)

What is Trading “Volume”? (Trader 101)

Update: 2024-07-26
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Description

In this video, I explain the concept of trading volume, a fundamental term in the world of day trading and swing trading. Trading volume refers to the number of transactions involving a particular asset, such as stocks or cryptocurrencies, over a specified period. By understanding trading volume, you can gain insights into market activity and liquidity, which are crucial for making informed trading decisions.


Using simple analogies and real-world examples, I illustrate how trading volume is calculated and why it is important for traders. For instance, the video includes a virtual chalkboard session where I demonstrate the exchange process using apples as a metaphor. Additionally, I showcase how trading volume is reflected on my trading platform and discuss its implications for buying and selling assets.


High trading volume indicates a high number of transactions, which generally leads to better liquidity and higher chances of executing trades at desired prices. Conversely, low trading volume can result in reduced market activity and difficulty in finding buyers or sellers. This video aims to equip you with the knowledge to interpret trading volume effectively, enhancing your trading strategy and market understanding.

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What is Trading “Volume”? (Trader 101)

What is Trading “Volume”? (Trader 101)

ClayTrader