I'm trying to understand what constitutes a good trading volume in the stock market. I want to know the ideal or acceptable range that is considered healthy for a stock's trading volume.
6 answers
CherryBlossomPetal
Sun Nov 17 2024
This level of liquidity ensures that traders can enter and exit positions smoothly, without facing difficulties due to lack of buyers or sellers.
CryptoVisionary
Sun Nov 17 2024
Liquidity is a crucial factor for traders when selecting stocks or cryptocurrencies to trade.
SamuraiSoul
Sun Nov 17 2024
Generally speaking, an Average Dollar Volume (ADV) of 20 million or more is considered sufficient for most traders to buy and sell without significantly impacting the price.
Caterina
Sat Nov 16 2024
For traders with very large accounts and correspondingly large position sizes, the requirements for liquidity are higher.
Daniele
Sat Nov 16 2024
In such cases, an ADV of over 80 million is considered extremely liquid, providing ample opportunities for buying and selling without causing significant price movements.