Trading volume counts how many units of a security were bought and sold in a given window, most often a trading day. High volume means many participants were active. Low volume means fewer trades, which can make prices jump more on a single order.
Key takeaways
- Volume helps you judge whether a price move had broad participation or just a thin burst of activity.
- A rising price on rising volume is often read as stronger conviction than a rise on very light volume.
- Thin volume can make it harder to enter or exit at the price you want.
- Exchanges and data sites publish volume next to price so you can read both together.
Why it matters in Ethiopia
Young exchanges often have quieter sessions than deep global markets. Watching volume beside price helps you see when a move is widely traded and when the market is thin, which matters for how easily you can buy or sell.