ES Friday 10-28-16 : Hot Topic

Volume Ratio

Search Dictionary

Definition of 'Volume Ratio'

The Volume Ratio is the number of messages submitted for each executed contract in a given product.

This ratio is calculated by some exchanges (typically futures and options exchanges such as the CME in order to prevent abuse and market manipulation.

Typically, a clearing firm will be fined if they allow their members to excessively place and withdraw orders on the exchange and cause a flood of unexecuted orders to potentially slow down the speed at which the exchange operates.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.