Options Volume vs Open Interest: What Traders Should Watch
Options Volume vs Open Interest: A Beginner’s Guide Volume and open interest are two of the most commonly quoted numbers on an options chain, and they are also two of the most commonly confused. Both describe activity in a contract, but they measure different things and answer different questions. Understanding the distinction helps you read liquidity, positioning, and conviction before you place a trade. What Is Volume? Volume is the number of contracts traded during a single session. It resets to zero at the start of every trading day and counts every buy and every sell that crosses in that contract, regardless of whether the trade opened a new position or closed an existing one. ...