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Glossary term

Average Daily Volume

The typical amount of a security traded each day.

Average daily volume, or ADV, is often measured in dollars. Traders compare their order size to ADV to estimate whether their trade is small or likely to move the market.

Example: A $10,000 trade in a stock with $25 million of ADV is tiny; a $50 million trade is not.

Where this appears

The retail liquidity edge over hedge funds