What is trading volume?

On a typical day a stock trades about 2 million shares. Today it trades 6 million, three times its usual volume, after the company raises its forecast, and the price rises from $40 to $44. Heavy volume on a move means many traders took part.

If the same $4 rise had come on 500,000 shares, fewer people would have been behind it. Volume counts each share once per trade: if you buy 100 shares from a seller, volume rises by 100, not 200.

On JagSim's chart, Volume is one of the free indicators: it draws a bar under each candle for the shares traded in that period. Volume also sets a JagSim trading rule. In one session, one member can trade at most a tenth of a stock's usual daily volume (its average over the last 20 sessions, or its last session if that was more). A larger buy is refused, and the order box says the limit before you press. How trading works on JagSim.

Is high volume good or bad?

Neither on its own. It shows how many people are trading. A price move on heavy volume has more traders behind it than the same move on light volume.

What is average volume?

The typical number of shares traded a day over a recent stretch, such as 20 or 30 sessions. Comparing today's volume with it shows whether today is busy or quiet.

Why does volume matter for my orders?

In a heavily traded stock, orders fill quickly near the last price. In a thinly traded one, a large order can move the price and fill worse than expected.

Does crypto have volume?

Yes, measured in coins or dollars traded. Coins trade around the clock on many exchanges, so volume figures for the same coin can differ by source.