Volume-Open Interest Question

[mik1973]

I have read a few books on technical analysis but am still trying to get my head around the main difference between Volume and Open Interest.
As I understand:
Volume= number of shares traded in an underlying instrument
Open Interest =number of unliquidated contracts in a futures instrument

Where i am getting confused is where i see a volume bar for a futures instrument (as well as a open interest line). If open interest is a measurement for futures then what is volume actually measuring with regard to a futures instrument?

Thx in advance
Mick

 

[rog1111]

Where i am getting confused is where i see a volume bar for a futures instrument (as well as a open interest line). If open interest is a measurement for futures then what is volume actually measuring with regard to a futures instrument?

Mick

You seem to have described it quite well above. The futures volume is just the total number of contracts that traded during the period/day, whether they were new positions or contracts being liquidated. Those contracts still open on both sides with 2 counterparties are reflected by the OI.

rog1111

 

[mik1973]

Rog,
Many thanks for response- i guess i just couldn't see the woods for the trees.
Mick