Volume has a particular significance in relation to IG's platform. Here, we define volume in general investing and explain what it means to you when trading with IG.
In trading, volume is the amount of a particular asset that is being traded over a certain period of time. It is often presented alongside price information, as it offers an extra dimension when examining an asset’s price history.
Volume is used most often in equities trading, where it shows the number of shares that are being traded. The number of actual trades made is not given, so if five buyers purchase one share each it looks the same as if one buyer purchases five shares.
In technical analysis, volume is important as it helps determine the significance of price movements. If a price movement is accompanied by a proportionate increase in volume, it is seen as more significant than one that isn’t.
In order to see volume on our charts, click on the 'technical' tab, and then scroll across to 'volume'.