Trade volume and liquidity are considered interrelated terms on the stock market. It is because trade volume is an indicator of a commodity’s liquidity level. A higher trade volume indicates a greater overall market interest for a particular stock or commodity. The stocks are getting traded more frequently and more rapidly than the ones with lower volume. Hence, a high trade volume is generally an indication of a high liquidity level for a particular security or commodity in the market.
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I dont know if its correct but correct me if im wrong ?
