What is open interest in option trading | Open interest explained in Malayalam

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.

Check all posts in our option trading series

1 - What is option trading | Option trading basics explained in Malayalam - https://www.teqmocharts.com/2022/07/option-trading-basics-imalayalam.html

2 - Option Trading Basics | Intrinsic value in option trading - https://www.teqmocharts.com/2022/07/option-trading-malayalam.html

3 -  What is call option | How to buy or sell a call option in Upstox - https://www.teqmocharts.com/2022/07/Call-option-malayalam.html

4 - What is put option | How to buy/sell put option in Upstox - https://www.teqmocharts.com/2022/07/what-is-put-option-how-to-buysell-put.html

5 - When to buy or sell a call or put option | 4 types of orders in options - https://www.teqmocharts.com/2022/07/when-to-buy-or-sell-call-or-put-option.html

6 - Moneyness of an option contract | In the money | At the money | Out of the money option contracts - https://www.teqmocharts.com/2022/07/moneyness-of-option-contract-in-money.html

7 - What is open interest in option trading | Open interest explained in Malayalam - https://www.teqmocharts.com/2022/07/what-is-open-interest-in-option-trading.html