-> Open Interest (OI) is a critical metric in futures and options trading, representing the total number of outstanding derivative contracts for a specific asset. It indicates the level of market activity and can influence trading decisions.
-> Strikewise OI Analysis enables traders to monitor and compare OI for a strike price (call and put options), across index and equity

Basic Terms
a) OI: OI stands for Open Interest, which reflects the total number of active futures or options contracts for a given financial instrument that has not yet been closed.

Why use it?
-> Open Interest is used by traders and investors to assess market sentiment, liquidity, and the health of a particular market. It helps identify trends, potential price movements, and the level of trader interest in a security or derivative.

Analysis-> Instrument Overview-> Open Interest-> Strikewise OI

How to use it?
-> You can track changes in OI to gauge market participation and assess whether new money is flowing into or out of a market.
-> Steady or increasing OI may indicate strong market interest while decreasing OI might suggest waning interest.


1) What does it mean when OI is increasing while prices are falling?
-> An increase in OI during falling prices could indicate bearish sentiment, with new short positions being added. Traders should consider other factors like trading volume and news events for a comprehensive analysis.

2) Can OI alone predict future price movements?
-> No, OI should be used in conjunction with other indicators. While it provides valuable insights, it doesn’t predict price movements on its own.

Additional Resources:

a) Buildup explained-> Link

b) What Is The Relationship Between Open Interest And Volume?-> Link


For further support and understanding join our trading community group-> Telegram Link


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