RE: ASOS Down Today25 Sep 2023 15:38
Example of Volume of Trade
Suppose a market consists of two traders, trader 1 and trader 2. The first trader buys 500 shares of stock ABC and sells 250 shares of XYZ. The other trader sells those 500 shares and buys the 250 shares of stock XYZ to the first trader. The total volume of trade in the market is 750 (500 shares of ABC + 250 XYZ shares). This is because we do not double-count the volumeβwhen trader 1 buys 500 ABC shares from trader 2, only 500 shares are counted. Likewise, only 250 shares of XYZ would be recorded on the volume tally.