Open interest
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Open interest
The total number of derivatives contracts traded that have not yet been liquidated either by an offsetting derivative transaction or by delivery. Related: Liquidation.
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Open Interest
1. The options or futures contracts that an investor has not closed and that have not matured or expired. For example, if an investor buys 10 futures contracts on Monday, and sells six on Wednesday, the investor has an open interest of four at the end of the trading day on Wednesday. It should not be confused with the trading volume for an option or futures contract.
2. The number of orders to buy a security made before the beginning of a trading day.
2. The number of orders to buy a security made before the beginning of a trading day.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
open interest
The number of contracts for particular futures or an option which, at a given time, are outstanding. A large open interest indicates more activity and liquidity for the contract.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Open interest.
Open interest is a record of the total number of open contracts in any particular commodity or options market on any given day.
You have an open interest when you enter a futures or options contract. The contract remains open until it expires, requires delivery or settlement, or you close it by selling it or buying an offsetting contract.
Open interest is not the same thing as trading volume, which records how many contracts have been opened or closed on a particular day.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.