Chapter 04 · Section 4.1

Volume and Open Interest

1. 1Open Interest- Definition 1→
2. 2Open Interest- Definition 2→
3. 3Usage on Exchanges→
4. 4Calls and Puts→
5. 5Case study→
6. 6Call Open Interest/Volume→
7. 7Put Open Interest/Volume→
8. 8Call Day 2→
9. 9Call Day 3→
10. 10Put Day 3→

In order to understand the functioning of an options or futures exchange it is useful to explain the terms of trading volume and open interest. The term trading volume is also used on stock exchanges and designates the number of shares, certificates or contracts that changed hands during one day. The term open interest, however, is only used on option and futures exchanges.