Volume
The number of shares traded in a security over a stated period, counting each trade once.
Formula
Volume = total number of shares changing hands in the period
Unit
shares
In depth
Volume counts shares, not rupees and not investors, and every trade has both a buyer and a seller, so volume can never tell you that 'more people were buying than selling'. What it does measure is participation: how much conviction, forced activity or index flow was behind a price move. A large price change on very low volume is easier to reverse than the same move on heavy volume, which is why volume is used to qualify breakouts. In derivatives, volume is often confused with open interest, which counts contracts outstanding rather than contracts traded.
Worked example
A stock rises 6% on 8,00,000 shares against a twenty-day average of 1,20,000 shares, roughly 6.7 times normal. The move carried unusually broad participation, though whether it persists is a separate question the volume figure cannot answer.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Volume” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.