Glossary · Markets & Trading Mechanics

Volume

The number of shares or contracts traded in a period.

Volume counts how many shares (or contracts) changed hands over a period — a day, an hour, or a single candle. Rising volume can show stronger participation; falling volume can show quieter, less decisive trading.

Volume is context, not a signal by itself. A big price move on heavy volume often attracts more attention than the same move on unusually light volume, because it suggests more of the market was involved.

Example

A stock that usually trades 2 million shares a day suddenly trades 12 million on a breakout day — traders may treat that volume spike as confirmation of interest.