08-04-2025 by NightCat

Please note: This page is under construction. More information will be added.

Meta Description: Learn how trading volume works in commodity futures and why it’s the #1 tool for small-budget traders to avoid traps and spot high-probability trades

What is volume?

Trading volume refers to the total number of shares or contracts traded for a particular security (stock, forex pair, cryptocurrency, etc.) during a given trading day. It’s one of the most important metrics traders analyze because it reveals the level of interest and activity in a particular asset.

Key Concepts:

1 contract:

A standardized agreement to buy/sell a commodity (e.g., 1,000 barrels of oil, 5,000).

High volume:

Many traders are active, meaning tight spreads and smooth order execution.

Low volume:

Few participants, leading to erratic price jumps and slippage.

The Power of Volume

Price tells you what is happening in the markets but Volume tells you why . For traders focused on WTI Crude Oil (CL) or Natural Gas (NG) futures, understanding volume means:

✔ Seeing real demand behind price moves (not just noise)

✔ Avoiding liquidity traps that hurt small accounts

✔ Spotting institutional activity before big trends develop Let’s break down how volume works in these key energy markets.