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Options: Open Interest.
Open
interest is the number of open contracts of a given option. An
open contract is either put or call that is not exercised, closed
or expired.
Each open transaction has a buyer and a seller, but for
calculation of open interest, only one side of the contract is
counted.
Open interest increases when a buyer opens a put or call position
and, vise versa, open interest
decreases when a buyer sells/closes a put or call position.
Volume and
open interest are important indicators in futures markets. |
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