posted on 06-06-2019

Net Volume

Updated October 1, 2019

What is Net Volume?

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

How Does Net Volume Work?

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 Does Net Volume Matter?

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.


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Related Definitions

Uptick Volume
Uptick volume is the number of shares of a particular stock that trades when the price is increasing. See More
Downtick
A downtick occurs when a security sells at a price less than the preceding sale. A downtick is the opposite of an uptick. See More
Volume
Volume represents the total number of securities traded during a certain period of time. See More
A Shares
A shares are a type of mutual fund share. They are distinguished from B Shares and C Shares by their load (fee) structure. See More
Uptick Volume
Uptick volume is the number of shares of a particular stock that trades when the price is increasing. See More
Downtick
A downtick occurs when a security sells at a price less than the preceding sale. A downtick is the opposite of an uptick. See More
Volume
Volume represents the total number of securities traded during a certain period of time. See More
A Shares
A shares are a type of mutual fund share. They are distinguished from B Shares and C Shares by their load (fee) structure. See More

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