Volume in Options

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It is an indicator of the traders interest in a particular Option.

Volume measures the interest of traders in an Option. It tells us about the total number of a particular Options contracts are traded in the options market. It is calculated on daily basis. For example, say 2 buyer buys 40 lots of an option and 2 seller sells 20 lots of options in a day. So the volume for that day will be (40-20)= 20.

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