Volume and Open Interest

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Chapters in this video

  1. 0:00 Volume as the daily odometer
  2. 2:00 Open interest as the cumulative waiting room
  3. 2:51 The four buyer and seller transaction combos
  4. 3:32 Pause and predict: close meets new open
  5. 4:15 Exam trap: high volume, falling open interest
  6. 5:21 Rapid-fire exam recap

What this video covers

  • Why volume counts every transaction (opening, closing, or transfer) and resets to zero each trading day
  • Why open interest is cumulative, lagging, and reported by the Options Clearing Corporation (OCC) the morning after the session
  • The four buyer/seller combinations and exactly when open interest increases, decreases, or stays unchanged
  • Why open interest rises only when both sides open, and falls only when both sides close
  • Why a contract that transfers from a closing party to an opening party leaves open interest flat
  • The classic exam trap where volume is surging while open interest is falling, and what that signals about positioning
  • How to read a question stem fast and decide the net effect on open interest without second-guessing

Read the full lesson, free

This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.

Read the Free Lesson → free · no signup wall