What Is “Open Interest” and How Does It Differ from Trading Volume?
Open interest is the total number of outstanding futures or options contracts that have not yet been closed, offset, or exercised. It represents the total commitment of traders to the market.
Trading volume is the total number of contracts that have changed hands during a specific period, typically one day. Volume measures activity, while open interest measures the number of active contracts in existence.
Glossar
Trading Volume
Liquidity ⎊ ⎊ Trading volume represents the total quantity of an asset ⎊ cryptocurrency, options contracts, or financial derivatives ⎊ bought and sold within a given timeframe, typically expressed in units or notional value.
Options Contracts
Contract ⎊ Options contracts within cryptocurrency represent a derivative instrument granting the holder the right, but not the obligation, to buy or sell an underlying digital asset at a predetermined price on or before a specific expiration date.
Open Interest
MarketExposure ⎊ Open Interest represents the total notional value of all outstanding, unsettled derivative contracts ⎊ such as options or perpetual futures ⎊ that have not yet been closed out or exercised.
High Open Interest
Indicator ⎊ High Open Interest serves as a critical quantitative indicator of substantial market participation and the overall depth of capital committed to a specific cryptocurrency derivative contract.