What is Volume?
Volume is a concept used to refer to the amount of three-dimensional space that an object occupies or contains. Physically, it is a measure of capacity or the amount of space an object takes up, such as the amount of liquid a container can hold. In the finance world, volume is used to describe the number of shares or contracts that were traded during a given period of time.
Volume in the Physical World
In the physical world, volume is typically measured in cubic units, such as cubic centimeters (cm3), cubic feet (ft3), and cubic meters (m3). Some common examples of volume include:
- A glass of water (e.g. 250 cm3)
- A swimming pool (e.g. 15,000 m3)
- A shipping container (e.g. 35 m3)
- A bathtub (e.g. 200 ft3)
Volume in the Financial World
In the financial world, volume is used to describe the number of shares or contracts that were traded during a given period of time. This is commonly used in technical analysis to assess the strength of a trend. The higher the volume, the more likely the trend is to continue.
Conclusion
Volume is a concept that is used to refer to the amount of three-dimensional space that an object occupies or contains. In the physical world, volume is typically expressed in cubic units, such as cubic centimeters, cubic feet, and cubic meters. In the financial world, volume is used to describe the number of shares or contracts that were traded during a given period of time.