Activity and exposure count different things.

Separate the flow from the stock

Volume counts contracts traded during a stated period. Open interest counts contracts that remain outstanding at a stated point in time. These are different measurements, even when they appear beside the same silver futures contract on a screen. A busy session can generate substantial volume without creating an equally large increase in outstanding positions. The same exposure may change hands repeatedly while the number of contracts still open changes very little.

One new contract has two sides

Suppose a new buyer opens one long position and a new seller opens the matching short position. This hypothetical trade adds one contract to volume and increases open interest by one. It does not create two contracts of open interest merely because there are two participants. Every outstanding futures contract has a long and a short side. Counting both sides would double-count the contractual relationship rather than describe additional market exposure.

Transfers and closures look different

Now suppose an existing long sells one contract to a new buyer who opens a long position. The trade adds one to volume, but open interest is unchanged: the buyer replaces the departing holder. If an existing long and an existing short instead trade to close their respective positions, volume again increases by one while open interest falls by one. These examples isolate a single matched trade and assume the stated opening or closing intentions.

Read the figures without inventing a signal

Rising open interest is not automatically bullish, because each additional contract has both a long and a short participant. Volume alone does not identify who initiated a trade, why they traded or whether positions represent hedging or speculation. Check the contract month, reporting period and data status before comparison. CME distinguishes preliminary reports from final figures, which can differ. Interpret these counts alongside price and other evidence, without converting them into a guaranteed directional forecast.

FOLLOW THE EVIDENCE

Sources & further reading

Sources checked 14 November 2026. Reference organisations do not endorse this website. Price examples are hypothetical and educational.