Forex Term

Volume

How much of an asset is traded over a period.

Volume measures how much trading activity took place in a period. In centralised markets it counts contracts or shares; in decentralised forex, brokers show tick volume — the number of price changes — as a proxy. Rising volume can confirm the strength behind a price move.

Example

A breakout on rising volume is seen as more convincing than one on thin volume.

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Risk

Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.