What is high trading volume in a stock indicative of?

What is the minimum volume to call a stock "good liquidity stock" for day trading in indian stock market?

  • Answer:

    It really depends on the price of the stock (since $1.00 stock and $300.00 stock will have much different impact on the number of shares you purchase) and how much money you're playing around with. I'd say a good rule of thumb would be 1 million average daily volume, though.

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