What is a Dollar Volume?
The dollar volume is the total value, expressed in terms of US Dollars (USD), of a certain security, or certain stock exchange, traded over a certain period of time. Often it is reported over the course of one business day to indicate whether shares were traded lightly or heavily during the course of the trading day. The dollar volume may be an indicator of how confident investors are in their choices. The New York Stock Exchange, for example, has an average dollar volume of $55 billion USD in shares traded per day. However, the true dollar volume can fluctuate wildly from one day to the next, depending on market conditions. One day, the dollar volume could be closer to $100 billion USD. The next day, it could be closer to $35 billion USD. There are a number of things that can affect the dollar volume. A great uncertainty in the market may mean many investors prefer to hold onto their shares, rather than trading. This could happen in bear or bull markets. Certain international holidays
