What does volume indicate?
Written by Chanel
Updated over a week ago

Trading Volume indicates how many shares were bought and sold for that particular stock that day.

Just below this, in the overview section for each share, you’ll see this averaged out over a rolling 10-day period.

Typically a high-volume stock has more than 500,000 shares traded daily, whereas low-volume shares are below this.

As larger companies tend to hit this mark, high-volume shares are generally perceived as less volatile, with a smaller gap between the bid and ask price.

However, it is important to note that spikes in trading can result in a corresponding spike in volume for that day.

Volume is just one factor used to determine a share's performance, so be sure to consider your circumstances and make a choice that’s right for you.

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