Derivatives & Risk

What is the difference between open interest and volume?

Open interest and volume both gauge derivatives activity but measure different things. Volume counts the total contracts traded during a period and resets each day. Open interest counts the contracts currently outstanding, that is, positions opened and not yet closed. Volume can spike from rapid in-and-out trading, while rising open interest shows new money committing to positions. For example, a price move on rising open interest suggests conviction; the same move on falling open interest suggests positions closing. Both inform liquidity and positioning reads, and trading on them carries risk.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.