Average Daily Volume (ADV) is a metric used to measure the average number of shares or contracts traded in a given security or market on a daily basis over a specified time period, typically one month. ADV provides insight into the liquidity of a security or market and is used by investors, traders, and market participants to assess market conditions, trading activity, and the ease of entering and exiting positions. Higher ADV typically indicates a more liquid market, making it easier to buy or sell shares without significantly affecting the price. Lower ADV may suggest a less liquid market, where price movements can be more pronounced and it may be more difficult to execute trades. Investors should consider ADV when making investment decisions, especially when considering the liquidity and risk associated with a security or market.