Trading Volume Explained

Being the indicator of the market activity of an asset, this parameter must be taken into account while picking stocks or coins for a StockBattle contest. Turning a blind eye to this figure is not a good idea, and you’ll soon find out why.

What Is Trading Volume?

It’s the total number of shares or coins that have exchanged hands during a certain period of time (usually 24 hours for crypto and during a trading day for shares).

How Does It Work?

The volume is counted on each transaction even though the same shares or coins may be traded back and forth several times. To wit, if 100 shares of TSLA were bought, then sold, then bought and sold again, then the volume would show 400 shares despite the fact those are the same 100 shares having been in operation several times.

Why Does It Matter?

A higher trading volume is the indicator of a higher liquidity of an asset, which means that the price of this asset is more prone to an increase. Isn’t this exactly what entrants are looking for when drafting their portfolio – the assets that will go up within a short period of time?

That’s why it’s one of the paramount pieces of information every entrant is recommended to check before jumping into a StockBattle contest. Otherwise you can miss out on a good player and deprive yourself of a fat gain.

Just like a market cap, you’ll find each asset’s trading volume right on the StockBattle platform, below any asset’s chart.

Use this knowledge to buffer your gains in StockBattle contests. Sign up for StockBattle and get in on the action!

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