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Open Interest Explained: Practical Guide for Traders

Name: Open Interest Explained: Practical Guide for Traders
Uploaded: 2024-10-10T12:47:08Z
Duration: 12 min 27 s
Channel: Ankit Rawat
Description: Understand open interest from scratch, the four futures built-up states, and how to find support and resistance from option chain OI.

Intermediate·English·12 min·381 views·2 years ago

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Open interest is the number of outstanding contracts in an expiry that are not yet settled. Combined with price, futures open interest helps gauge sentiment and pick trade ideas.

This lesson explains open interest from scratch and the four states: longs (price up, OI up), long unwinding (price down, OI down), shorts (price down, OI up) and short covering (price up, OI down). It then applies open interest and option chain data to Nifty, BankNifty and other liquid scrips, including finding support and resistance.

What you’ll learn

✓What open interest means

✓Longs, shorts, short covering and long unwinding

✓Using option chain OI for support and resistance

✓Applying OI to Nifty, BankNifty and liquid stocks

✓Using OI for option selling and day trading

Read and practise

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SPEAKERAnkit Rawattrainer , Quantsapp

Seasoned derivatives expert with over 6 years of experience across equities, derivatives, and commodities markets. With a proven track record of successful trading and deep market insights.

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