<p>Average Daily Trading Volume (ADTV) is a key metric in finance, representing the average amount of a particular asset traded each day over a specific period. It's a crucial indicator for traders, providing insights into market liquidity and volatility.</p>

<h2>How It Works</h2>
<p>The calculation of ADTV is straightforward. It's the total trading volume for a specific asset over a given period, typically a month or a year, divided by the number of trading days in that period.</p>
<p>For instance, if the total trading volume for a stock in a month is 10,000,000 shares and there are 20 trading days in that month, the ADTV would be:</p>
<p><strong>ADTV = Total Trading Volume / Number of Trading Days</strong></p>
<p>ADTV = 10,000,000 shares / 20 days = 500,000 shares per day</p>

<h2>Why It Matters for Traders</h2>
<p>ADTV is a vital indicator for traders for several reasons:</p>
<ul>
  <li><strong>Liquidity</strong>: High ADTV indicates high liquidity, making it easier for traders to enter and exit positions without significantly impacting the price.</li>
  <li><strong>Volatility</strong>: Low ADTV can signal low liquidity and high volatility, as small trades can have a significant impact on the price.</li>
  <li><strong>Risk Management</strong>: Understanding ADTV helps traders manage risk by anticipating how news events or other factors might affect trading volumes and, consequently, prices.</li>
</ul>

<h2>Example</h2>
<p>Consider two stocks, A and B, both with a current price of $100:</p>
<table>
  <tr>
    <th>Stock</th>
    <th>ADTV (shares)</th>
  </tr>
  <tr>
    <td>Stock A</td>
    <td>1,000,000</td>
  </tr>
  <tr>
    <td>Stock B</td>
    <td>100,000</td>
  </tr>
</table>
<p>If you're using STB's MetaTrader 5 platform to trade these stocks, you might choose Stock A due to its higher liquidity, indicated by its higher ADTV. This would make it easier to enter and exit trades without affecting the price significantly.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>ADTV is a measure of the average amount of an asset traded each day.</li>
  <li>High ADTV indicates high liquidity, making it easier to trade without affecting the price.</li>
  <li>Low ADTV can signal low liquidity and high volatility.</li>
  <li>Understanding ADTV is crucial for risk management and informed trading decisions.</li>
</ul>