What Is Open Interest? Let’s keep it simple 👇
Open Interest (OI) is the total number of futures or options trades that are still open — not closed, not settled.
In short, it shows how many traders are currently active in the market.
How Open Interest Works:
• OI goes up when new positions are opened
• OI goes down when traders close or settle positions
• OI stays the same when positions are just transferred between traders
No magic — just tracking what’s still live.
Why Open Interest Matters:
Open interest helps you see market strength and liquidity.
More OI usually means more traders involved and smoother trades.
It can also hint at **market sentiment**:
• Price up + OI up → buyers stepping in
• Price down + OI up → selling pressure building
But don’t confuse it with volume.
Volume shows how much was traded today —
OI shows how much is **still open**.
**Bottom line:**
Open interest doesn’t predict price by itself, but when you combine it with price action, volume, and trend… it becomes a powerful tool. 🔍
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