Quoted Volume

Understanding the key terms and acronyms in the trading world can be a daunting task for beginners. However, we are here to help you get on the right track. One of these key terms you need to understand is Quoted Volume. So, let's dive into it!

What is Quoted Volume in Trading?

Quoted Volume refers to the number of shares that are being offered for sale at a given price. It represents the total volume of all quotes given for a particular security or commodity during a specific time period. This term is commonly used in stock market and crypto exchanges.

Importance of Understanding Quoted Volume

Knowing the Quoted Volume can be a helpful tool in gauging the liquidity of a security or commodity. It provides traders with an insight into the supply and demand of an asset, thus, facilitating better trading decisions. A high quoted volume often indicates a high level of activity and interest in a particular security or commodity.

Calculating Quoted Volume

The calculation method for Quoted Volume can vary depending on the asset class and the market where the trading is occurring. However, it generally involves adding up all the volumes of individual trade quotes given during the trading session. Always remember that information from trusted and robust trading platforms is crucial in getting accurate quoted volume calculations.

Difference Between Quoted Volume and Traded Volume

It’s essential to differentiate Quoted Volume from Traded Volume. While quoted volume pertains to the number of shares offered for sale, traded volume, on the other hand, refers to the number of shares actually traded. Understanding the distinction can provide a deep insight into the market movements.

In summary, Quoted Volume is a useful metric that can inform traders about the supply and demand for a certain asset. Make sure to include it in your trading toolkit!