3.8What is trading volume?
1What is it?
Volume is the number of shares traded in a period, usually a day.
2Why does it exist?
Volume shows interest. A price move with high volume is more meaningful than one with low volume.
3Stock market example
If 1 crore Infosys shares change hands today, the volume is 1 crore. Delivery % is the share of that volume where buyers actually took the shares into their demat (not intraday).
4Diagram
5Quick revision
- Volume = number of shares traded.
- High volume = high interest.
- Price moves with volume are more reliable.
6Knowledge check
Q1. If 5 lakh shares traded today, what is the volume?Show answer
5 lakh.
Q2. Which is more meaningful: a price rise on high volume or low volume?Show answer
High volume.
Q3. What is delivery %?Show answer
The share of volume that was taken into demat accounts, not squared off intraday.
See it live on MojoStox