How many shares can I trade without exceeding a safe percentage of a stock's average daily volume?

How this is calculated

• Max shares equals average daily volume multiplied by the percentage limit you choose.
• Trading a large share of a stock's daily volume can move the price against you as you build or exit the position, an effect often called market impact or slippage.
• Thinly traded stocks can also make it harder to exit a position quickly if you need out, since there may not be enough natural buyers or sellers on the other side.
• Average daily volume changes over time and can spike or shrink sharply around news and earnings. Use a recent average, not a stale one from months ago.
• This tool does not set the percentage limit for you. Different strategies and account sizes call for different comfort levels; you decide the number.