We have discussed about the concept of open interest from basics to advanced through our posts on different concepts relating to the same and also discussed about participant wise open interest report. Read all those earlier posts to get a good understanding of the concept of open interest. In this post our main focus is […]
Category: Open interest basics
This section contains posts relating to bare minimum concepts required to be learnt in open interest analysis.
Options OI basics
The open interest in options is a bit different in its interpretation part just because the inherent nature of the option instruments in terms of time decay and volatility cool off puts option sellers at an advantage if they have big enough capital to play with and take advantage of these factors to their side. […]
Futures OI basics
Open interest can help futures traders understand whether the market is gathering strength or losing momentum. Wondering how? Have a look at the following scenarios and you could get in the right way of reading the open interest. Here are the potential scenarios in markets and what they suggest. Fresh Longs: If prices are rising […]
Open interest is commonly associated with the futures and options markets. Open interest is the total number of outstanding derivative contracts, such as options or futures that are currently open and yet to be squared off. It’s important to note that open interest equals the total number of contracts, not the total of each transaction by every buyer and […]