Question about Volume

T

TomR29

I have a question as to the way trading volume is calculated.
An example will probably be the best way to proceed here.
The question of how volume is calculated applies to both
NASDAQ and NYSE.

ABC stock currently trades at Bid: 100.00 Ask: 100.25
As a retail customer I put in a sell order at the market to dump my 10,000 shares. There is a retail buyer out there who wants to buy
the 10,000 shares at the asked price. The market maker buys my
shares then sells them to the retail buyer.

Did ABC report 10,000 shares or 20,000 shares traded?


XYZ stock currently trades at Bid: 100.00 Ask: 105.00 (hmmmm...)
As a retail customer I put in a sell order at the market to dump my 10,000 shares. My order is executed. There is currently no retail buyer
out there who wants the 10,000 shares at the asked price.

Did XYZ report 10,000 shares traded or zero?
 
Quote from TomR29:
----the way trading volume is calculated.
----the market for ABC stock currently is 100.00 bid, 100.25 ask.
----I put in a sell order at the market to dump my 10,000 shares.
----There is a retail buyer out there who wants to buy
the 10,000 shares at the ask price.
----10,000 shares or 20,000 shares traded?
----XYZ stock currently trades at Bid: 100.00 Ask: 105.00
----I put in a sell order at the market to dump my 10,000 shares.
----My order is executed.
----XYZ report 10,000 shares traded or zero?
More...
1) For ABC, the volume calculation would be your 10,000 shares traded at 100.00. The next trade would be 10,000 more shares done at 100.25 for a total of 20,000 share straded.
2) For XYZ, it would be 10,000 shares.
3) As a "retail" trader, you will not be doing 10,000 share lots of a $100 stock. :p
 
3) As a "retail" trader, you will not be doing 10,000 share lots of a $100 stock. :p [/B][/QUOTE]

It's wishful thinking...
Thanks
 
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