Liquidity and Volume are the two different concepts widely misunderstood by the traders community. High Volume typically represents higher number of executed orders or high trading transactions, however high liquidity represents the order book is stuffed with thick limit orders at Bid and Ask prices levels. More closer the liquidity , lesser the market impact cost and higher the market efficiency.
Over the past few Year’s, there has been a quick shift towards algo / Quant HFT (High Frequency Trading) based trading, Where as Asset managers make 24% return in market & HFT traders make 300% Return. Both among long-term investors using execution algorithms to lower trading costs and short- term investors automating market making and statistical arbitrage strategies