Investing for Beginners , investing

Trading volume is an amount of securities that was traded in the market over some period. Usually volume is measured for a trading session (day), week or month but other periods also may be used. Higher number of securities traded in the stock exchange means higher trading volume.

Trading volume may be useful characteristic for two reasons. At first, volume is important to every investor because it describes the liquidity of the investment. And another, trading volume is used in technical analysis for many indicators. Increase in trading volume may signify some good news for the stock.