What Open Interest Tells Us About Trends 📢
Вставка
- Опубліковано 7 жов 2024
- What is Open Interest? www.financial-s... PLEASE LIKE, SUBSCRIBE AND SHARE THIS VIDEO SO WE CAN DO MORE! And how can it help us; what does it tell us about trends?
Open Interest is in the futures market or options markets. It doesn't apply to stock trading because the shares in issue are the shares in issue.
Understanding Open Interest
Open Interest literally means how many people have a position open in that current futures contract at any one time. So an open interest of 10 would mean that there are 10 contracts that are open and haven't yet expired or haven't yet closed.
So how can we use this information? How can we use Open Interest? One way of using it is as confirmation of a trend. (if the open interest is increasing we can assume that that trend is reasonably strong). Conversely if we're still in a trend but open interest is declining (people are closing positions) then this could be a sign that the trend is weakening.
This is different to volume; volume is just a number that is traded and volume occurs when a buyer and a seller do a deal.
👉 It seems a lot of our viewers are non-subscribers. Make sure to subscribe to our youtube channel as we upload regular videos! If you hit the “Bell” icon (🔔) you will receive a notification on youtube every time that we upload a video on our channel. Bell icon hitters are super fans of our channel 🥰
This guy nailed the saying "if you can't explain it quickly, you don't understand it well enough".
Thank you!
What i dont understand is how increasing open interest confirms an increasing price trend. In a zero sum game, it does not only mean that fresh new buyers are coming in, but also exactly the same amount of sellers as well right? So in a sense it is just like volume, meaning that the only thing that you can conclude from it is that more and more people are trading the asset, am i missing something?
The best explanation ever, thank you so much!
I think I'm going to watch this a few times before it clicks. But thank you for making this video.
Clear and concise...
Well explained bravo
thank you
When price rises on high volume, it also confirms the trend. So what is the difference between using open interest vs. volume? sounds similar to me, except maybe volume bars will be more exaggerated.
thanks a lot, it is finally clear! good job
Thank you 🙌🙌🙌
Cheers good video!!
Thank you clearly explained
explained very well
crystal clear TY
TY
Very clear, thank you.
If I sell calls, does that number get added to the open interest? And if so, how do I know the open interest amount was from someone who bought calls and someone who sold calls? Example: if I see that the open interest is 5000, was it from someone who bought 5000 calls or was it someone who sold 5000 calls?
Very helpful
Awesome video. What happens if theoretically a buyer held 10 contracts and there were no buyers, would the cboe still process the sale?
Hi can we know Contract is Shorted or Long at specific Strikes
I would like you explain this same concepts using candlesticks chart please
Hi, how to check open interest & in which website? please explain.
Thanks, so is open interest data available for spot fx market as well ?
You are really inspiring
if theres too many open interest ...is it hard to sell?
Hi there. Do you know of any website that offers Open interest by any means?
Please kindly advise
Thanks
makes ZERO sense. where do you get the initial seller from and why dont you count him in your OI
does the open interest have different rates for calls and another interest rate for puts or are they all bundled in as “open interest” ?
if open interest is low does that mean it will be hard to sell?
BUT IF OPEN INTEREST IS THE BALANCE OF LEFT CONTRACTS AND VOLUME JUST ADD ALL. THEN VOLUME SHOULD ALWAYS BE HIGHER THAN OPEN INTEREST ? WHY I SEE VOLUMEN MUCH LESS TAHN OPEN INTEREST IN MANY CASES?
How can we check change in oi in usa market
tradingeconomics.com/commodities
To be honest this tells us nothing right? Since it doesn't even count when a new buyer comes in to buy from an old seller. That's still fresh meat! Should also count.