JoymistaWhat Is Open Interest?
Open interest is the number of futures or options contracts that are still open and have not been closed.
Explained
Open interest rises when a new buyer and a new seller open a contract between them, and falls when both sides close. Rising open interest with rising price means new money is joining the move; a sharp drop during a strong move can mean closures or liquidations.
Example
Example with made-up numbersOpen interest is 10,000 contracts. Two new traders open 500 between them, making 10,500; then two others close 200 between them, making 10,300.
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Related terms
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- CVD (Cumulative Volume Delta)Delta is market-buy volume minus market-sell volume in a candle, and CVD is its running…
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Open in JoymistaEducational content, not investment advice.