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Trading Volume Meaning

Trading volume represents the total amount of an asset traded over a specified period. It is one of the most widely used indicators of market activity and participant interest.

High trading volume typically signals strong liquidity and market engagement, while low volume may indicate reduced interest or higher execution risk. In crypto markets, volume is often fragmented across multiple exchanges, making aggregated volume analysis essential.

Traders use volume metrics to confirm trends, assess liquidity conditions, and evaluate the reliability of price movements.

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