“Volume removed” note appears on the consolidated tape during heavy trading periods, indicating that some data may be omitted to catch up. This can put traders at risk of making decisions based on out-of-date information. The note means only stock symbols and prices will be displayed, with volume information for small volume trades removed. The market is usually moving rapidly up or down during this time, which can create chaos and panic among investors. In rare cases, trading may halt or close for the day to avoid a catastrophe.
Removed volume is a note that sometimes appears on the consolidated tape used to report transactions in multiple markets during periods of heavy trading, alerting people to the fact that some data may be omitted to allow the tape to catch up. day. This is typically done when the tape is running two minutes or more behind, which can put traders at risk of making decisions based on out-of-date information during very robust trading periods. When this note is displayed, it means that only stock symbols and prices will be displayed, with volume information for small volume trades removed.
Volume information provides data on how many shares are traded, and while it can be useful to investors, when trading is heavy, the tape can’t keep up when it comes to showing all the activity going on in various financial markets. The ticker will flash “volume removed” to let people know, and once the tape has managed to catch up, the display will revert to the more traditional format, showing volume and other pertinent information.
Depending on who is running the consolidated tape, trading volume information may be omitted when fewer than 5,000 shares are involved, or the tape may omit volume information for all transactions of less than 10,000 shares. In either case, the tape will be able to catch up with the removed volume, as it takes less time to display just one symbol and the current trading price. People active during that trading day can also take note of the volume removed warning flashing, so they know to look for trades of interest later if they want more information on trading volume.
When the market is so active that the consolidated tape needs to show a volume removed warning, it is usually a sign that the market is moving rapidly up or down. Either people are trying to buy low and sell high, taking advantage of an uptrend, or they are trying to dump underperforming stocks before they lose more value in a crash.
Fast trading can sometimes exacerbate market problems by creating chaos and panic among investors, a concern on many trading floors, and in very rare cases, traders in a financial market may temporarily halt trading or close for the day. to avoid a catastrophe. This is an expensive and controversial move and is carried out only in extreme circumstances.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
