Market Volume
In prediction markets, market volume measures how many shares or contracts have been traded. It reflects activity, not belief direction.
High volume indicates strong engagement. Many participants are entering, exiting, or adjusting positions as information changes.
Low volume suggests limited participation. Prices in these markets can move easily and may not reflect broad consensus.
Volume often changes over time. It tends to rise around major news, key dates, or near resolution.
For analysts, market volume adds context to probability prices. A price move supported by high volume is usually more meaningful than one driven by thin trading. Market volume is a core component of prediction markets data. It helps explain volatility, confidence, and signal reliability.
Why It Matters
Market volume shows how much conviction and attention a forecast has. It helps users judge whether probabilities are widely supported or fragile.
How is market volume different from open interest in prediction markets?
Market volume measures how much trading occurred over a period of time. Open interest measures how many positions remain open. A market can have high volume but low open interest if traders frequently enter and exit. Analysts use both to understand participation dynamics.
What does high market volume signal in prediction markets?
High market volume usually signals strong interest and active belief updating. It often appears around important information events. Volume-backed price moves are generally more reliable. However, volume alone does not guarantee forecast accuracy.
How should market volume be used in prediction markets data analysis?
Market volume is used to validate probability movements. Analysts compare volume with price changes to detect meaningful signals versus noise. Sudden price moves with low volume are treated cautiously. Volume improves interpretation when combined with liquidity and confidence indicators.
Real-World Example
On Polymarket, an election market may see a surge in volume after a major debate. This indicates that many participants are reassessing their positions at the same time.
Market Volume and FinFeedAPI
FinFeedAPI’s Prediction Markets API provides market volume as part of prediction markets data. Analysts can track volume over time, compare it across events, and align it with probability changes. This supports participation analysis, signal validation, and market health assessment. The API enables consistent access to market volume across prediction markets.