Stock Market Volume

Volume - This is the number of shares or contracts that were traded during the period. The relationship between prices and volume  is important.

The number of shares of a particular stock that is traded in a given period of time is called Daily volume that would be the number of shares traded in one day.

A company's volume is a sign of its health. If a company has a day where its volume is considerably higher than its average daily volume. it is expected that some news came out that affected the stock.

Trader should avoid stocks with small volumes.

Open Interest - This is the total number of outstanding contracts those that have not been exercised, closed, or expired of a future or option. Open interest is often used as an indicator with Volume.   NEXT