Using Open Interest To Find Bull/Bear Signals
Many traders have been asking me question on my write up of FII Data
analysis, Keeping all the question in mind i have prepared a cheat sheet
which will help you in understanding my data analysis with more
clarity.
1. What do you mean by Open Interest (OI) in futures and options?
When there is trade between a buyer and seller, a contract opens and all such open contracts are together called as open interest. So if Trader A have bought 1 lot of Nifty Futures expecting it to go up and Trader B have sold 1 lot expecting it to go down, that makes it 1 open contract and hence the open interest of 1.
2. How would you read when I write “
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1. What do you mean by Open Interest (OI) in futures and options?
When there is trade between a buyer and seller, a contract opens and all such open contracts are together called as open interest. So if Trader A have bought 1 lot of Nifty Futures expecting it to go up and Trader B have sold 1 lot expecting it to go down, that makes it 1 open contract and hence the open interest of 1.
2. How would you read when I write “
posted by Bramesh at
5:26 PM
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