I am trying to understand the difference between volume and open interest. Here is my simple example, can any of you tell me if this is correct?
"Let's say A sells an option to B, who a few hours later decides to close their position by selling the same option on to C. The volume of trade for this option would be 2 (two exchanges have taken place) but the OI would be one (only one contract is open)."
Apologies if this is a stupid or obvious question!
Submitted December 18, 2020 at 03:55AM by ahflu https://ift.tt/37slRKm
