Open Interest and Volume are crucial metrics in the world of derivatives and technical trading. Open Interest (OI) refers to the total number of outstanding contracts that have not been settled. A rise in OI indicates new money coming into the market, suggesting strength in the current trend. A decline in OI may imply that the trend is losing momentum. Volume, on the other hand, represents the number of contracts traded in a particular time frame. It gives insight into market activity and trader interest. For example, rising prices with increasing volume and OI is considered a bullish signal. Conversely, falling prices on rising OI and volume can indicate strong bearishness. Traders often use the combination of OI and volume to confirm trends and reversals, especially in options and futures trading. Understanding how to interpret these figures allows traders to gauge market sentiment, avoid false signals, and make informed entry/exit decisions.