Total turnover is a crucial metric in trading, and understanding it is essential for making informed decisions. In this guide, we’ll delve into what total turnover means on IQCent and why it matters for traders.
What is Total Turnover on IQCent?
Total turnover refers to the total volume of trades conducted within a specified period on the IQCent trading platform. It encompasses both buy and sell orders, providing a comprehensive view of market activity.
Why is Total Turnover Important?
- Market Activity Assessment: Total turnover indicates the level of activity in the market. Higher turnover suggests a more active market with increased trading opportunities.
- Liquidity Evaluation: It helps in assessing the liquidity of an asset. Higher turnover generally means better liquidity, ensuring smoother trade execution.
- Trading Strategy Selection: Traders often consider total turnover when selecting their trading strategies. Different strategies may be more effective in high or low turnover environments.
- Risk Management: Understanding turnover aids in risk management. Higher turnover can imply higher volatility, potentially necessitating more cautious trading approaches.
How to Interpret Total Turnover
- Comparative Analysis: Compare total turnover over different periods to identify trends or changes in market activity.
- Asset-Specific Analysis: Analyze turnover for specific assets to tailor your trading strategies based on their individual market dynamics.
- Consider External Factors: Take into account external events or news that may influence total turnover.
Frequently Asked Questions (FAQs)
Q: How is total turnover calculated on IQCent?
Total turnover is calculated by summing up the volume of all trades conducted on the platform within a specific time frame.
Q: Does total turnover include only completed trades?
Yes, total turnover only includes trades that have been executed and completed.
Q: Can total turnover be an indicator of market sentiment?
Yes, high total turnover may indicate increased market activity and potentially heightened sentiment.
Understanding total turnover on IQCent is essential for any trader looking to navigate the markets effectively. By grasping its meaning, significance, and how to interpret it, you’ll be better equipped to make informed trading decisions.