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What is trading volume?
Trading volume is the amount of an asset traded during a set period, such as 24 hours, counted in units or in their money value. It shows how much buying and selling took place, and is often read as a sign of interest and liquidity.
What it means for you
Reported volume can be inflated by wash trading, so a large 24-hour figure does not prove you could sell a large amount near the quoted price. Like any chart data, volume describes the past and does not tell you what happens next. Volume on one platform or one trading pair can be much smaller than the headline total.
How it works
For futures, the CFTC defines volume as the number of contracts traded during a specified period. It differs from open interest, which counts contracts still outstanding at a point in time. Technical analysts chart volume alongside price. In crypto, volume figures come from exchanges' own reports. Researchers who tested trades on 29 exchanges against statistical patterns found in genuine trading concluded that fabricated volume was rampant on unregulated exchanges, where it improved exchange rankings and temporarily distorted prices.
Sources: CFTC Glossary, Cong, Li, Tang and Yang: Crypto Wash Trading (arXiv) · checked 4 October 2026
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