Open Interest Charts of Nifty , Banknifty - NSE | Quantsapp
How to calculate Open Interest ? The total number of active contracts held by market participants at the conclusion of the day is known as open interest. The total amount of futures or option contracts that have not yet been exercised (squared off), expired, or fulfilled by delivery can also be used to define it. The futures market is mostly affected by open interest . For futures and options contracts, open interest, or the total number of open contracts on a security, is frequently used to validate trends and trend reversals. The amount of money entering the futures market is measured by open interest. There must be a buyer and a seller for every futures contract. As a result, only one contract can be made by a buyer and a seller. Therefore, we only need to know the totals from one side or the other, buyers or sellers, and not the sum of both, in order to calculate the total open interest for any particular market. Every day, the open interest position—which is displayed as a posit