Trading volume refers to the total number of shares or contracts traded for a specific security or market during a given time period. It is an important indicator of market activity and liquidity, showing how actively a security is being bought and sold. Higher trading volume often suggests greater interest in a security, while lower volume may indicate less investor interest. Traders and investors use trading volume to assess the strength of price movements. For example, if a stock's price rises on high volume, it may signal a strong upward trend. Conversely, if prices rise on low volume, it could suggest a lack of conviction in the move, making it less reliable.