<h2>Volume of Trade</h2>
<p>The <strong>volume of trade</strong> refers to the total number of units or contracts traded in a particular asset over a specific period. It's a crucial technical indicator that provides insights into market liquidity and trader sentiment.</p>

<h2>How It Works</h2>
<p>Volume is typically measured in ticks (for Forex), contracts (for CFDs), or shares (for stocks). It can be calculated using the following formula:</p>
<table>
<tbody>
<tr>
<td><strong>Volume</strong></td>
<td>=</td>
<td>Number of units traded</td>
</tr>
<tr>
<td>Per</td>
<td></td>
<td>Time period</td>
</tr>
</tbody>
</table>
<p>For example, if 10,000 lots of EUR/USD were traded in an hour, the volume for that hour would be 10,000 lots.</p>

<h2>Why It Matters for Traders</h2>
<p>Volume is a vital indicator for traders as it can:</p>
<ul>
<li>Confirm trends: High volume during an uptrend or downtrend can validate the trend's strength.</li>
<li>Signal trend reversals: Low volume during a trend can indicate waning momentum, while high volume during a reversal can signal a strong trend change.</li>
<li>Identify false signals: High volume can help distinguish between genuine price movements and false signals caused by low liquidity.</li>
</ul>
<p>On the <strong>MetaTrader 5</strong> (MT5) platform, volume can be viewed in the Market Watch window or added as an indicator on charts.</p>

<h2>Example</h2>
<p>Consider the following scenario on MT5:</p>
<ul>
<li>EUR/USD is in an uptrend, with prices rising from 1.18000 to 1.19000 over two hours.</li>
<li>During the first hour, the volume is 5,000 lots, and during the second hour, it's 10,000 lots.</li>
<li>This increase in volume during the price rise suggests strong momentum and confirms the uptrend.</li>
</ul>

<h2>Key Takeaways</h2>
<ul>
<li>Volume of trade measures the total number of units traded in an asset over a specific time.</li>
<li>It helps confirm trends, signal reversals, and identify false signals.</li>
<li>Volume is easily accessible on MT5, making it a valuable tool for traders.</li>
</ul>