---
title: "Definition of ADV"
url: https://signalscreener.fr/definition/avg-daily-volume/
markdown_url: https://signalscreener.fr/definition/avg-daily-volume.md
description: "Average Daily Volume is the average number of shares traded per day over a specific period (typically 30-90 days)."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "ADV"
  - "Average Daily Volume"
translations:
  es: https://signalscreener.fr/es/definition/avg-daily-volume.md
  fr: https://signalscreener.fr/fr/definition/avg-daily-volume.md
  zh: https://signalscreener.fr/zh/definition/avg-daily-volume.md
---

# Average Daily Volume

## What is ADV?

Average Daily Volume is the average number of shares traded per day over a specific period (typically 30-90 days). It measures the stock's liquidity and trading activity.

## Think of it like this

Think of a highway. High volume = busy freeway with lots of cars (easy to merge/exit). Low volume = quiet country road (you're very visible, hard to get in/out without affecting traffic).

## Formula

```
ADV = Total Volume Over Period / Number of Trading Days
```

- **Total Volume**: Sum of shares traded over period
- **Trading Days**: Number of trading days (typically 30-90)

## Why it matters

- Indicates liquidity - can you get in/out easily?
- High volume means tighter spreads, easier execution
- Low volume increases slippage and risk
- Critical for large trades or institutional investors

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 100K | Very Low | Illiquid, wide bid-ask spreads |
| 100K-1M | Low | Limited liquidity, be careful with size |
| 1M-10M | Moderate | Good liquidity for most investors |
| > 10M | High | Excellent liquidity, institutional-grade |

## Real-world example

Apple: 50M+ shares/day = mega liquid. Tesla: 80M+ shares/day = very active. Small biotech: 100K shares/day = be careful with orders. Penny stocks: <50K = danger zone for slippage.

---

This is educational content, not financial advice.

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