Volume is just activity of contracts traded in a given day. Each transaction executed adds to volume, but not necessarily to OI – particularly if a new buyer purchases from an existing seller. This doesn’t add to the amount of open contracts, just shifts it around.
But if someone new says I want to sell a CC on this ticker, and a new buyer wants to buy it, that creates volume and OI together.
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Volume is just activity of contracts traded in a given day. Each transaction executed adds to volume, but not necessarily to OI – particularly if a new buyer purchases from an existing seller. This doesn’t add to the amount of open contracts, just shifts it around.
But if someone new says I want to sell a CC on this ticker, and a new buyer wants to buy it, that creates volume and OI together.
OI is fully irrelevant anyway……….