Volume counts how many contracts (or shares) have traded today for a specific strike, stock, or instrument. It’s distinct from Open Interest, which counts the total number of contracts still outstanding, potentially spanning many trading days. Both are useful liquidity signals when checked together, and both are published live on the NSE’s option chain for every listed contract.
Related Reading
See how Volume fits into reading a full Option chain in What Is an Option Chain? How to Read It Step-by-Step.
Example
A Nifty 24,700 Call shows Volume of 1.2 lakh contracts today but Open Interest of only 40,000. Most of today's trading was existing positions being opened and closed within the same session — a sign of intraday, speculative activity rather than traders building positions to carry forward.
Frequently Asked Questions
Does high Volume always mean high liquidity?
Generally yes — high Volume usually means tighter bid-ask spreads and easier entry/exit. It's still worth checking Open Interest alongside it to see how many positions are actually being carried, not just traded.
Does Volume reset every trading day?
Yes. Volume counts only the current session's trades and resets to zero at the start of each trading day, unlike Open Interest, which carries forward across sessions until positions are closed or expire.
Can Volume be higher than Open Interest?
Yes, and it often is — especially on expiry days — since the same contract can be bought and sold multiple times within a session, with each trade adding to Volume without necessarily adding to Open Interest.