What Is Open Interest?
Open interest refers to the total number of contracts, such as futures or options, that remain open and have not yet been settled, closed or exercised for a particular product. It’s a running tally rather than a single day’s trading volume.
How Open Interest Differs From Volume
Trading volume counts how many contracts changed hands in a given period, while open interest reflects how many contracts are still active. A high volume day doesn’t necessarily mean open interest rises, since trades that close existing positions reduce it just as much as new positions increase it.
Why Open Interest Matters
Many traders watch changes in open interest alongside price movement, since a rising figure alongside a price trend can suggest that trend is being supported by new positions, while a falling figure may indicate positions are being closed out.
Open Interest Doesn’t Predict Direction: What to Keep in Mind
As a precaution, open interest describes positioning, not where prices will go next, and it should not be relied on alone when assessing a market. It’s best read alongside other information rather than in isolation.
Tracking What’s Still on the Table
Open interest offers a useful window into how active a contract market remains over time. Understanding what the figure does and doesn’t tell you helps put it in proper context alongside other market data, rather than treating any single reading as a signal on its own.
⚠ Risk Warning:CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Ensure you fully understand how CFDs work and whether you can afford to take the high risk of losing your money.
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