Open Interest means the total number of outstanding or open contracts help by the online share market participants at a given point of time. By looking at the open interest you can identify the types of stock trading also. Open interest is an important tool for those who trade in futures and options. The open interest or OI changes every day on the basis of outstanding contracts. Let us now learn about the basic.
Basic Open Interest Analysis | online share market
- When the worth of the stock goes up and since of that open interest is increasing, it means the stock is robust and it’s in bullish mode. the increase within the open interest suggests that the uptrend will continue within the coming trading sessions.
- The worth of the stock goes up and along side that open interest is decreasing, it means the stock is weakening and it’s in moderately bullish mode. the autumn within the open interest suggests that the uptrend will weaken within the coming trading sessions.
- IF stock goes down and since of that open interest is decreasing, it means the stock is in moderately bullish mode. the autumn within the open interest suggests that the downward trend will continue within the coming trading sessions.
- When the worth of the stock is decreasing and along side that open interest is increasing, it means the stock is weak and it’s in bearish mode. the increase within the open interest suggests that the downtrend will continue within the coming trading sessions.
