Hi, Today's our video is about open interest and its comparison with volume, in our future and options trading video series! We discuss about basic concepts of option trading in Malayalam, in first few videos in this series.
In this video we’ll walk you through:
- What is open interest in option trading.
- Comparison of open interest and volume
TIMESTAMPS
0:00 Intro
0:48 What is open interest
2:06 Comparison of open interest and volume
Watch video in Malayalam 👇👇👇
What is open interest
Open interest refers to the total number of outstanding
option contracts (unfilled buy or sell orders) for a specific underlying asset,
strike price, and expiration date. It represents the number of traders who hold
positions in the option and can be used to gauge market activity and liquidity.
Open interest is an important metric in options trading that
provides valuable information about market activity and liquidity. It refers to
the total number of outstanding contracts (unfilled buy or sell orders) for a
specific underlying asset, strike price, and expiration date. For example, if a
trader buys 1 call option contract and another trader sells 1 call option
contract, the open interest for that option would increase by 1, since there is
now one outstanding contract.
It is important for traders to monitor open interest along
with other market indicators to make informed trading decisions. It can also
provide insights into potential price movements and potential trends in the
market. Understanding open interest is a crucial part of successful options
trading and can help traders make more informed decisions and potentially
achieve better results.
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