Trading

Average daily volume

The average number of shares or contracts traded per day over a stated period.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

Twenty sessions totaling 20 million shares imply average daily volume of 1 million shares over that window, not a guarantee of liquidity at your order price.

IMPORTANT DISTINCTION

A historical daily average does not establish depth at a specific price or the liquidity available during stress.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — order types and execution

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