What does 'Low volume' mean? (2024)

You may have seen the term ‘low volume’ on some of Coinranking’s coin pages. Read further to find out what that means >>

What does 'Low volume' mean? (1)

It's important to first understand whattrading volume is.Trading volume is the total value of all coin tradeswithin a certain time period, usually within the past 24 hours. This total value consists of both buying and selling the coin and represents the overall activity of the cryptocurrency.

Low volume

If an exchange has a low volume of trading for a certain cryptocurrency, the trading volume is below 500.000 USD in 24 hours. A low-volume cryptocurrency would indicate a lack of liquidity and subsequently falling prices.

In the case of an investor, if a token has a low volume on an exchange, the investor would likely have to pay a higher price to buy the token because there is a lower supply of the token.

Someone looking to sell a token with a lower volume might have to sell the token for a lower price than if it had a higher volume because there may not be enough demand for it.

Tokens with low volume tend to be more volatile than higher-volume tokens. This is because price movement can easily be manipulated.

High volume

Cryptocurrencies with a higher trading volume indicate a higher demand for cryptocurrencies. This means more people are buying and selling the token and interest in the token is high.

Strong surges in trading volumes would indicate strong bullish sentiment. This could translate to prices going up.

The volume of cryptocurrencies matters because...

...trading is difficult when liquidity is low.
Liquidity allows you to quickly buy or sell a cryptocurrency. It refers to the number of tokens available for trading. When liquidity is low, it's generally due to lower trading volume. When the liquidity is at the right amount, the trader should be able to buy or sell the token at the same price.

When lower liquidity occurs, the bid-ask spread is higher.

...it's not as easy to take profits.
When trading volume is low and a trader wants to sell, there might not be a buyer that is willing to buy the token at the seller's price. It could take a longer time to sell the tokens when trading volume is low.

...a low volume might cause uncertainty.
When trading volume is low, it could indicate that there’s not a lot of interest in the token. You can wonder:

  • Why is no one taking an interest in the token?
  • What is the reasonable price for the token?
  • Are prices high or low?
  • Did a big investor dump the tokens?
  • Is the company legit?

Thus, the uncertainty around the token price will cause a lack of trust.So if you’re looking to trade, make sure the token has a reasonable trading volume to avoid any issues with trading down the line.

What does 'Low volume' mean? (2024)

FAQs

What does 'Low volume' mean? ›

a small amount, especially of sales or products: The low volume of online sales in some remote areas keeps delivery prices high. STOCK MARKET. if shares are traded in low volume, not many investors buy or sell them: in low volume Stocks closed weaker in low volume after a day of sluggish trading.

What does low volume indicate? ›

Trading volume is defined as the number of shares traded in a particular period of time. So, low trading volume can indicate a lack of interest in either buying or selling. That means it could be bullish if low volume occurs in a downtrend. It could be bearish if it's noted in an uptrend.

Is it good to buy low volume stocks? ›

Trading in low-volume stocks can be very risky. Low-volume stocks typically have a daily average trading volume of 1,000 shares or fewer. They may belong to small, little-known companies that trade over-the-counter (OTC). But they can also be traded on major stock exchanges.

Is decreasing volume bullish or bearish? ›

Decreasing volume in parallel with falling price indicates a bearish trend. Volume unchanged and price down. When volume stops decreasing, and the price keeps going down, it indicates a long-term bearish signal.

What does low volume in work mean? ›

In low-volume operations, products are made to order. Each product or service can have its own routing through a unique sequence of workstations, processes, materials, or setups. As a result, scheduling is complex. The workload must be distributed among the work centers or service personnel.

What does it mean to be low volume? ›

a small amount, especially of sales or products: The low volume of online sales in some remote areas keeps delivery prices high. STOCK MARKET. if shares are traded in low volume, not many investors buy or sell them: in low volume Stocks closed weaker in low volume after a day of sluggish trading.

What does low blood volume indicate? ›

Hypovolemia can occur through a hemorrhage, sodium depletion, water loss, and the loss of plasma. Dehydration can also cause reduced blood volume but only occurs due to a lack of water. The two are distinct terms due to their effect on plasma osmolality, but both result in decreased blood volume.

What is good volume for a stock? ›

To reduce such risk, it's best to stick with stocks that have a minimum dollar volume of $20 million to $25 million. In fact, the more, the better. Institutions tend to get more involved in a stock with daily dollar volume in the hundreds of millions or more.

Should you trade on low volume days? ›

Volatility – When a stock has low daily trading volume, the price of the shares tends to be more volatile. Since a company's market value is based on the most recent price per share, limited shares traded each day can result in the market value seeing large percentage swings intra-day and day-to-day.

What is a bad trading volume? ›

Investing in low volume stocks can put an investor's portfolio at unnecessary risk for a number of reasons. Typically, any stock that trades at fewer than 10,000 shares a day is considered a low-volume stock.

How to tell if stock volume is buying or selling? ›

You can distinguish buying volume from selling volume based on whether a transaction occurs at the bid price or the ask price. Changes in volume can give traders short-term indications of where the price might go next.

What is a good PE ratio? ›

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. But it doesn't stop there, as different industries can have different average P/E ratios.

How to read a volume chart? ›

A trading volume chart depicts the trading volumes of stock. It is a bar chart with volume bars of three colours. The volume bars show the rise/drop in volumes, and the colours indicate whether the stock closed higher or lower than or at the same price as the previous day.

Why is low volume better? ›

Metabolic stress and mechanical tension are two of the most important aspects that lead to hypertrophy. To induce more tension, you must add more weight and lift heavier loads. This means that the volume is lower because of the reduced number of reps you can do, which also reduced the metabolic stress.

What is a good volume level? ›

Experts recommend keeping sound levels at somewhere between 60 and 85 decibels to minimize the damage your ears are exposed to. If you are listening to music at around 100 decibels, restrict your usage to within 15 mins.

What is considered low volume trading? ›

High volume stocks trade more often. Meanwhile, low volume stocks are more thinly traded. There's no specific dividing line between the two. However, high volume stocks typically trade at a volume of 500,000 or more shares per day.

What does a low volume of distribution indicate? ›

(High Vd -> More distribution to other tissue) Conversely, a drug with a low Vd has a propensity to remain in the plasma meaning a lower dose of a drug is required to achieve a given plasma concentration. (Low Vd -> Less distribution to other tissue)

What does decreased volume mean? ›

Decreased volume shifts the system to the side of the reaction that has fewer moles of gas. For this reaction, there are three moles of gaseous reactants, and no moles of gaseous products, so the shift will be toward products.

What does lower your volume mean? ›

To lower in volume. To suppress the noise or speech of. To become silent or quiet. Verb.

How do I fix low volume on my phone? ›

To make sure the volume on your phone is working properly:
  1. Turn off Do Not Disturb Mode. ...
  2. Turn off Bluetooth. ...
  3. Brush the dust off your external speakers. ...
  4. Clear the lint out of your headphone jack. ...
  5. Test your headphones to see if they are shorted. ...
  6. Adjust your sound with an equalizer app. ...
  7. Use a volume booster app.
Jul 12, 2023

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