Searchable trading glossary
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Trading Glossary

Search common chart, candlestick, price-action, order, volume, liquidity and risk-management terms.

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Market Activity

3 terms
Market Activity

Volume

#

The number of shares traded during a period.

Why it matters

Volume helps show how much participation is behind a price move.

Example

A breakout with much higher-than-normal volume may have broader participation than one occurring on very light volume.

Market Activity

Relative Volume (RVOL)

#

A comparison of current trading volume with a typical or reference volume for a comparable period.

Why it matters

Relative volume can help identify unusually active stocks.

Example

An RVOL of 2.0 means current volume is roughly twice the reference level being used.

Market Activity

Liquidity

#

How easily shares can be bought or sold without causing a large change in price.

Why it matters

Low liquidity can create wide spreads, poor fills and sudden jumps between prices.

Example

A heavily traded large-cap stock is normally easier to enter and exit than a stock that trades only occasionally.