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.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
