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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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