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What is the difference between open interest and volume in cryptocurrency options?

avatarOddershede RosendalNov 26, 2021 · 3 years ago1 answers

Can you explain the distinction between open interest and volume when it comes to cryptocurrency options? I'm trying to understand how these two concepts differ and how they impact trading decisions.

What is the difference between open interest and volume in cryptocurrency options?
Cryptocurrency
Options
Open Interest

1 answers

  • avatarNov 26, 2021 · 3 years ago
    Open interest and volume are important metrics that traders consider when trading cryptocurrency options. Open interest refers to the total number of contracts that are currently open and have not been settled. It represents the level of market interest and the number of contracts that are still active. Volume, on the other hand, represents the total number of contracts that have been traded during a specific time period. It shows the level of market activity and the number of contracts that have changed hands. Both open interest and volume provide insights into market liquidity and can help traders gauge market sentiment. By analyzing these metrics, traders can make more informed decisions and potentially identify trading opportunities.

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