-> Open Interest (OI) is a critical indicator in futures and options trading, representing the total number of active derivative contracts for a specific financial instrument.
-> The open Interest Change feature is a valuable tool for traders, providing real-time OI change data and PCR values to help assess market sentiment and make timely trading decisions.
a) OI (Open Interest): Reflects the total number of outstanding futures or options contracts.
b) PCR (Put Call Ratio): A derivative indicator that helps gauge market sentiment by comparing the open interest of put contracts to call contracts.
Why use it?
-> The Open Interest Change feature offers real-time insights into market activity and sentiment through OI changes and PCR values.
-> It aids traders in assessing market dynamics and making informed trading decisions.
Analysis-> Instrument Overview-> Open Interest-> Open Interest
How to use it?
-> You can access the feature to monitor live OI changes for call and put strikes, visualized in an interactive bar chart format.
-> The PCR value is also provided for sentiment analysis.
-> Traders can use this data to stay updated on market trends and adjust their trading strategies accordingly.
1) How does PCR help in market analysis?
PCR (Put Call Ratio) compares the open interest of put and call contracts, indicating market sentiment. A high PCR may suggest a bullish sentiment, while a low PCR may imply a bearish sentiment.
2) What is the significance of OI changes in trading?
OI changes reflect evolving market dynamics. Increasing OI may indicate growing interest while decreasing OI could suggest waning interest or profit-taking by traders.
3) How often is the OI data updated in the Open Interest Change feature?
-> The feature provides real-time updates during market hours, ensuring traders have access to the latest OI data for informed decision-making.
a) What is Change in Open Interest (OI) and its Benefits for Options Trading? -> Link
b) Put-Call Ratio (PCR): A Beginner’s Guide -> Link
For further support and understanding join our trading community group-> Telegram Link
The materials and content available on this platform are intended solely for educational purposes, aiming to demonstrate the functionalities of the Stolo product and facilitate a better understanding of its operation. It is important to note that we do not assume responsibility for any financial gains or losses incurred. Prior to making any financial decisions, we strongly recommend consulting with your investment advisor for personalized guidance.