Volume Of Trade
Definition of 'Volume Of Trade'The total quantity of futures contracts bought and sold during a trading day. The volume of trade numbers, reported as often as once an hour throughout the current trading day, are estimates. Final, actual figures are reported the following day. In the meantime, investors can use tick volume, or the number of changes in a contract's price, as a surrogate for trade volume, since prices tend to change more frequently with a higher volume of trade. |
|
Investopedia explains 'Volume Of Trade'Volume tells investors about the market's liquidity. Higher volume means higher liquidity and better order execution. When investors feel hesitant about the direction of the stock market, futures trading volume tends to increase. Volume also tends to be higher near the market's opening and closing times, and on Mondays and Fridays. It tends to be lower at lunchtime and before a holiday. |
Related Definitions
Articles Of Interest
-
Using Volume Rate Of Change To Confirm Trends
Wise traders rely on indicators that show a trend in volume, because without supportive volume, a price movement has no conviction. -
Confirming Price Movements With Volume Oscillators
Use this indicator to validate a change in price direction and moving averages. -
How To Use Volume To Improve Your Trading
Volume is a simple yet powerful way for traders and investors to increase their profits and minimize risks. -
How To Read The Market's Psychological State
Discover what on-balance volume, accumulation/distribution and open interest can tell you about the market mood. -
Options Trading Volume And Open Interest
Learn how these two statistics can give you an edge in trading options. -
Uncovering Oil And Gas Futures
Find out how to stay on top of data reports that could cause volatility in oil and gas markets. -
Trading Is Timing
Learn how to make gains even if you don't get in at the right time. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Exploring Non-Dollar Currencies For Forex Trading
Learn how investments in foreign currencies can diversify your portfolio. -
Candlestick Charting: What Is It?
Discover the components and basic patterns of this ancient technical analysis technique.
Free Annual Reports