Basic of Volume and Open Interest

Definition of 'Open Interest'

The total number of options and/or futures contracts that are not closed or delivered on a particular day.
Few Scenarios to Understand OI
If a new buyer (a long) and new seller (a short) enter a trade, their orders are matched and open interest increases by one
If a trader who has a long position sells to a new trader who wants to initiate a long position, open interest does not change as the number of open contracts remains the same.
If a trader holding a long position sells to a trader wanting to get rid of his existing short position, open interest decreases by one as there is one less open contract.

Volume definition as per Investopedia

The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to ..

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