Explore the determinants of stock liquidity, including share volume and bid-ask spread, to understand how they affect trading ease and market impact.

Volume is the number of shares of a stock that have changed hands over a certain period of time, typically one day. Stocks with higher volumes have more investors interested in buying or selling them.

Interpreting volume in the futures market differs from doing so for stocks. Futures contracts have an expiry date, while stocks do not. This means volume fluctuations and patterns can mean something ...