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.
• b) Because, in principle, there is no such a thing as open interest on a stock exchange.
  Yes. The term open interest is used for instruments that are created on an exchange. Stocks are not created on an exchange, options and futures are. Continue

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