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How Open Interest is Calculated?

Posted By On 11/29/2007 08:44:00 PM Under
1. It is to be noted that each trade executed on the stock market has an impact on the open interest levels for any given particular day.

2. It is to be clearly understood that one buyer and one seller constitute to become a contract and thus if one old buyer and one old seller is closing the position which can be either existing or old position than the open interest will decline by one contract.

3. In case an old buyer closes his position and the same is purchased by a new buyer still the open interest will not change.


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