Chapter 04 · Section 4.1

Usage on Exchanges

The term "trading volume" is used both on stock exchanges and on option or futures exchanges. Why is the term "open interest" not used for stock exchanges?

• a) Because there is another term replacing it in the context of stock exchanges.
  No. The term open interest can only be used if for every long position there is a short position.
  b) Because, in principle, there is no such a thing as open interest on a stock exchange.

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