The aggregate number of trades that take place for a security or on an exchange on a given trading day. A high total volume is an indicator of a high level of interest in a security at its current price. It is an especially important tool in technical analysis, in which volume is used to determine the strength of a market indicator. For example, a price rise on heavy trading volume indicates that that price rise is a true indicator, while a technical analyst likely would be more skeptical of the same rise on lighter trading volume. The method for determining total volume is called volume counting. In the United States, the SEC determines the methodology of volume counting. It is often called volume or trading volume.
The aggregate amount of trading in a security on a particular security exchange, or in a specific type of security such as stocks, bonds, options, or futures contracts. Also called rate of return.