Confusion regarding Volume Statistics for Stock Markets

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xacobi
Posts: 2
Joined: Wed May 15, 2019 5:45 am

Confusion regarding Volume Statistics for Stock Markets

Post by xacobi » Wed May 15, 2019 6:11 am

Hi everyone. This is my first post. I have a few questions regarding volume data for stock markets. I'm pretty new to investing, markets, trading, but I do have about 2 years of experience, almost exclusively in cryptocurrency exchanges, which is a very different thing.

I use volume metrics and data significantly in my investing strategies, theories, and calculations. I have read a lot of trading and market information online regarding the importance of knowing and understanding the volume of the asset you are trading before going into a trade in the dark per se.

In my 2 years of experience in crypto markets, the crypto exchanges and the blockchain itself keeps a very specific and detailed accounting of all volume metrics and every single trade I do I have pretty good volumes for the current asset pair, along with all the other information needed to make a good trade. It isn't always perfect but it is pretty good.

Typically I use Tradingview.com as they seem to be one of the best charting sites. When I am doing trading and looking at the charts for crypto currencies, I can easily verify and match the exact volumes between Tradingview.com and the exchange and other sites that track volume.

So now to my question. Regarding the stock exchange like NYSE and NASDAQ, and of course Forex is even worse, but when I try to look at the trading volume and average trading volume of a high volume stock, lets say like apple or Amazon. It seems dificlut

For example lets take APPL. When I go to Trading View.com and look up an APPL chart, first of all it gives literally like 5 different options in multiple currencies etc.. So that is confusing from the begining. Next if I click on the NASDAQ one for USA, it gives a volume of about 900,000 shares. This is also the same as the amount that it gives me when I first visit the site, and it just pops up with AAPL automatically. But then when I go to almost any site, the volume for AAPL for the day is not 900,000 shares, and instead it is more like 35 million shares. There is just no correlation, and different sites give different volumes. None of it makes any sense. Why do the volumes not match exactly to the chart? What is going on? How does anyone do volume calculations if they can not verify the volumes they are working with.

This is just the beginning of my interest, as I am in the dark on this, and hoping to get some advice or direction to try to figure out how to actually find real volume data, ideally directly from the exchange itself. When I go to the site, the basic numbers are there, but there is no detailed accounting that verifies what is on the TradingView.com charts, which in my experience are the most accurate. So it is quite confusing.

Part of me feels that maybe what the volume is, and the average volume is actually a composite of ALL pairings involving AAPL, and that actually AAPL is trading between multiple currencies? Is this possible. Or does NASDAQ only accept $USD for all trades? That is really important to have clear in terms of actual trading volumes between asset pairs. That is the only thing I can think of, and I have done as much research as I can, and can find nothing that verifies that ALL trades within NASDAQ are in $US, nor anything that says that all the different Charts on TradingView.com are different currency trading pairs with AAPL.

Beyond stocks there is also futures and the worst of all is Forex. Forex gloats on and on and on about how their currency trading is the highest volume ever of all markets for everything. But banks do transfers all the time and it seems like most of this unbelivable volume is between banks which isn't exactly accessable to regular public shmoe traders. When trying to find simple basic information about actual verifiable individual market currency trading paries on any forex exchange, there is very little information. I also do NOT understand the charts when I look on Trading View. None of it makes sense.

Anyways I think that is enough of my ranting. Hopefully someone will be able to point me in the direction of actual data for stocks, I have pretty much given up on Forex for ever getting verifiable volume data for that, but it seems like at least for stocks it should be possible. Thanks in advance.

Valuethinker
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Joined: Fri May 11, 2007 11:07 am

Re: Confusion regarding Volume Statistics for Stock Markets

Post by Valuethinker » Wed May 15, 2019 7:32 am

You should know that c. 80% of trading now goes on via "Dark Pools" which AFAIK do not have to report their trades (pools of dark liquidity - off market bargain matching systems, basically servers hosted somewhere).

I don't really trust the volume numbers given - as non-professional users we get delayed trades anyways.

The Nasdaq trading of Apple will in any case only be a small percentage of the total Apple traded - because it trades on more than one stock exchange.

On the different currencies I think what this is doing is simply converting at the spot rate so that I, as a British user, can see what Apple is priced at in pounds. To buy it on Nasdaq I would still have to do an FX deal with my broker (selling my GBP and buying USD to pay the seller).

On FX volumes ($3 trillion a day?) the vast majority is speculative and between financial institutions.

Topic Author
xacobi
Posts: 2
Joined: Wed May 15, 2019 5:45 am

Re: Confusion regarding Volume Statistics for Stock Markets

Post by xacobi » Wed May 15, 2019 12:14 pm

WOW! I was not expecting to hear that. That is quite a surprise. How odd that something as unregulated as cryptocurrencies could actually be more transparent and accessable than other forms of "dark" trading as you say. Obviously the dark trading makes it much easier to manipulate the market. It is all very interesting. It may take 10-25 years, but it seems that eventually the majority of global trading will primarily take place on high volume blockchains (or better equivalents) simply because it is the only way to ensure transparency and reduce corruptions/ back channel manipulation, and professionals will simply demand it. Obviously it is still possible to manipulate the market directly even if everyone knows your ding it. haha. Thanks so much for the answer that opens up a whole new perspective of understanding our markets, and as you say, secondary, or offshore markets, as well as "dark" markets.

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