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What Is the Difference between “Open Interest” and “Trading Volume” in Options Data?

Open interest is the total number of options contracts that have been entered into and not yet closed (offset or exercised). It represents the total number of outstanding positions in the market.

Trading volume is the total number of contracts that have been traded (bought and sold) during a specific period, typically a day. Open interest measures the market's commitment, while trading volume measures the activity or turnover.

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