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Average daily trading volume  (ADTV) - Financial definition

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Synonym:  average daily volume

Concise definition of the term average daily trading volume

The ADTV represents the amount of individual securities traded in a day on average over a specified period of time on a given market.

Comprehensive definition of the term average daily trading volume

When a security's ADTV is subject to big changes, there is generally some news or event that has affected the market's perception of the security.
Usually, a higher ADTV means that a security is more attractive, because higher volumes tend to lead to narrower bid-ask spreads and lower volatility.

Additional information related to this definition

Definitions of related terms

Ask price  •  Bid price  •  Volatility

Formulas related to this definition

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