Trading Volume Definition

Learn the definition of trading volume and other ETF terminology from the glossary.

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Edited by: Staff

Learn more about Trading Volume

Trading Volume, a pivotal aspect in the ETF landscape, signifies the total number of shares bought and sold in the market. Beyond mere transaction quantities, high trading volumes contribute significantly to liquidity—a critical factor for investors. Ample liquidity ensures that bid-ask spreads remain tight, facilitating efficient trade execution. In the context of ETFs, a robust trading volume is indicative of a vibrant secondary market, empowering investors with the ability to enter or exit positions with minimal market impact. The interplay between liquidity and trading volume is essential for maintaining a healthy and responsive marketplace conducive to effective ETF trading.

Related Terms

Exchange-Traded Fund, Liquidity, Trading Volume

ETF Glossary is’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.