Trading volume is the total number of shares—or the total value of trades—bought and sold in a market over a given period.
Trading volume is a useful indicator of how active a market is:
Higher trading volume means more people are buying and selling, making it easier to enter or exit positions at competitive prices.
Lower trading volume may result in fewer available orders and larger price movements when trades are placed.
In general, markets with higher trading volume tend to have:
Better liquidity.
More stable pricing.
Faster order execution.
Prices that more accurately reflect the collective opinion of traders.
You can view a market's trading volume on its market page to help gauge the level of activity before placing a trade.