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What is the difference between volume and open interest?What is the difference between volume and open interest?Volume is the number of contracts traded on a given day of a particular option contract, just like the number of shares traded on a particular stock on a particular day. Open interest is the number of option contracts for a stock at a certain strike price and a particular expiration date that are open at the close of trading of the prior trading day. Both open interest and volume are good indicators of liquidity. Always check open interest and volume before making your trade. You don't want to get stuck with an option that that you can't sell.
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