Turnover rate, also known as "turnover rate", refers to the frequency of stock turnover in the market within a certain period of time, which is one of the indicators reflecting the strength of stock liquidity. There are different types of indicators according to the nature of the sample population, such as the total turnover rate of all listed stocks on the exchange, the turnover rate based on the number of a single stock issued, and the turnover rate based on the portfolio held by an institution.

among many tools of technical analysis, turnover rate index is one of the most important technical indicators reflecting the activity of market trading. Generally speaking, the daily turnover rate of most stocks is 1%-2.5% (excluding the initial listed stocks). The turnover rate of 7% stocks is basically below 3%, and 3% becomes a boundary.

when the turnover rate of a stock is between 3% and 7%, the stock enters a relatively active state. Between 7% and 1%, it is the emergence of strong stocks, and the stock price is highly active.

Extended information:

The turnover rate in emerging markets is higher than that in mature markets. The fundamental reason lies in the rapid expansion of emerging markets, more newly listed stocks, and the weak investment concept of investors, which makes emerging markets more active in trading.

a high turnover rate can indicate both capital inflow and capital outflow. Generally speaking, the high turnover rate of stock price at a high level will attract the attention of shareholders, which is likely to be the main shipment (of course, it may also be the main force to raise the position).

by combining the turnover rate with the stock price trend, we can make some predictions and judgments on the future stock price. The sudden increase in the turnover rate of a stock and the enlarged trading volume may mean that investors are buying in large quantities, and the stock price may rise accordingly. If a stock continues to rise for a period of time, and the turnover rate rises rapidly, it may mean that some profit-seekers want to cash out and the stock price may fall.

Baidu encyclopedia-turnover rate