1. Open interst is a terminology associated with futures and options trading. It measures the amount of money flowing in the futures market.
2. A seller and a buyer combines to form one contract. Thus to know total number of open interest one just needs to total either the buyers or sellers and do not add both of them else the open interest will get multiplied by a factor of 2.
3. Open interest shows the direction of the trend of the market. To simply understand open interest one needs to just understand that a buyer and a seller constitute one contract.
4. In next post we will study open interest calculation with an example.
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2. A seller and a buyer combines to form one contract. Thus to know total number of open interest one just needs to total either the buyers or sellers and do not add both of them else the open interest will get multiplied by a factor of 2.
3. Open interest shows the direction of the trend of the market. To simply understand open interest one needs to just understand that a buyer and a seller constitute one contract.
4. In next post we will study open interest calculation with an example.
Subscribe To Get Free Tips in Email Here
