Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Net Volume

What it is:

In trading, net volume refers to the difference between a security's uptick volume and its downtick volume.

How it works (Example):

Let's assume that investors bought 4,000,000 shares of Company XYZ today (the uptick volume) and sold 3,000,000 shares today (the downtick volume).

The net volume would be 4,000,000 - 3,000,000 = 1,000,000 shares.

Why it Matters:

Net volume is a measure of momentum. When net volume is positive, indicating that more shares are being bought than sold, the implication is that the demand for the shares is rising and the stock is hot. When net volume is negative, the implication is that the stock is on a downward trend.