Verbull Word of the day
Finance glossary

Open Interest

Trading · advanced
Definition

The total number of outstanding derivative contracts not yet settled.

Open interest counts the total active futures or options contracts that remain open. Rising open interest alongside rising price suggests new money supporting a trend, while falling open interest signals positions being closed. It differs from volume, which counts contracts traded in a period.

In a sentence

Rising open interest alongside the price climb suggested fresh money was backing the trend.

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