[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  unusualwhales.com Snorlax (๑❛ ڡ ❛๑) [@snorlax_uw](/creator/twitter/snorlax_uw) on x 107.5K followers Created: 2023-06-16 18:41:10 UTC Here's an analogy for volume and interest: I run an electric scooter rental business The number of scooters that change hands represents volume and the number of scooters that are rented out and held by a rentee overnight represent open interest. Day 1: The day starts with all scooters accounted for (0 scooters rented over night = X open interest) You show up and rent a scooter (1 scooter changing hands = X volume). You return it to me the same day (1 scooter changing hands = X volume) Volume: X OI: X Day 2: I wake up early to count my scooters. They're all accounted for so I know that X scooters were rented overnight (0 scooters rented over night = X open interest). I don't tally this value as the day goes on. I just do it once in the morning. On this day you show up and rent X scooters (5 scooters changing hands = X volume). You keep all X scooters overnight. Volume: X OI: X Day 3: I wake up up early to count my scooters. I'm X short so I know that X scooters were rented overnight (5 scooters rented over night = X open interest). You hand off all X scooters to your friend so that they can use them (5 scooters changing hands = X volume). Your friend keeps all X scooters overnight. Volume: X OI: X Day 4: I wake up early to count my scooters. I'm still X short so there is no change in the number of scooters rented overnight (5 scooters rented over night = X open interest). You 'opened' and 'closed' your scooter position but there was no change in the number of scooters rented overnight. XXXXXXX engagements  **Related Topics** [scooters](/topic/scooters) [Post Link](https://x.com/snorlax_uw/status/1669777149979492352)
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unusualwhales.com Snorlax (๑❛ ڡ ❛๑) @snorlax_uw on x 107.5K followers
Created: 2023-06-16 18:41:10 UTC
Here's an analogy for volume and interest:
I run an electric scooter rental business The number of scooters that change hands represents volume and the number of scooters that are rented out and held by a rentee overnight represent open interest.
Day 1: The day starts with all scooters accounted for (0 scooters rented over night = X open interest) You show up and rent a scooter (1 scooter changing hands = X volume). You return it to me the same day (1 scooter changing hands = X volume)
Volume: X OI: X
Day 2: I wake up early to count my scooters. They're all accounted for so I know that X scooters were rented overnight (0 scooters rented over night = X open interest). I don't tally this value as the day goes on. I just do it once in the morning. On this day you show up and rent X scooters (5 scooters changing hands = X volume). You keep all X scooters overnight.
Volume: X OI: X
Day 3: I wake up up early to count my scooters. I'm X short so I know that X scooters were rented overnight (5 scooters rented over night = X open interest). You hand off all X scooters to your friend so that they can use them (5 scooters changing hands = X volume). Your friend keeps all X scooters overnight.
Volume: X OI: X
Day 4: I wake up early to count my scooters. I'm still X short so there is no change in the number of scooters rented overnight (5 scooters rented over night = X open interest).
You 'opened' and 'closed' your scooter position but there was no change in the number of scooters rented overnight.
XXXXXXX engagements
Related Topics scooters