Open interest
Open interest refers to the sum of all open positions in a futures or options contract.
Open interest increases creates a new open position in any stock exchange transaction, which both the buyer and the seller, by one ( A buys a contract for the first time, B is sold for the first time a contract ).
Open interest remains unchanged in a transaction, which opened a position and another to close out ( A sells his contract to C).
Open interest decreases when the transaction both the buyer and the seller to close out a position (C sold to B).
- Futures
- Option trading