{"id":1854,"date":"2016-11-08T10:56:45","date_gmt":"2016-11-08T05:26:45","guid":{"rendered":"https:\/\/www.samco.in\/knowledge-center\/?post_type=ht_kb&p=1854"},"modified":"2022-01-02T12:20:59","modified_gmt":"2022-01-02T12:20:59","slug":"what-is-open-interest-oi-and-how-to-check-open-interest-in-samco-nest-trader","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/what-is-open-interest-oi-and-how-to-check-open-interest-in-samco-nest-trader\/","title":{"rendered":"What is Open Interest (OI) and how to check open interest in SAMCO NEST Trader?"},"content":{"rendered":"

Open Interest Definition<\/strong><\/span><\/h2>\n

Open Interest means the number of positions that has been created and which has not been squared off or expired in the futures and options segment. It is the total of the positions which are outstanding at a particular point of time. Suppose a person initiates a position in the security, it will amount to an increase in open interest till the time the position gets squared off. An increase in Open Interest indicates that fresh money is entering the contract and a decrease in the open interest signifies that money is moving out of the particular contract.
\nOpen Interest is important for trading as it indicates whether money is moving in or out of a contract. An increase in price with an increase in Open Interest indicates that fresh buying is happening in a security. Conversely, a decrease in price with an increase in Open Interest indicates that fresh shorts have been created in the scrip.
\nAn increase in price with a decrease in Open Interest indicates that the short positions are being covered while a decrease in price along with a decrease in price reflects that the long positions are being covered.
\nOpen Interest changes are generally measured in percentages.
\nIn the SAMCO NEST Trader<\/a>, Open Interest can be seen in the Snap Quote Dialog box by pressing the short cut key “F6”.<\/p>\n

\"Open
Open Interest<\/figcaption><\/figure>\n

On the right hand side, both Open Interest and % Change in Open Interest can be tracked.
\nThe derivative contracts for a particular scrip is put into ban period if the total Open Interest for all the months goes above 95% of market-wide position limits. If a scrip is in\u00a0ban period, no new positions can be created, while squaring off is allowed. The security is removed from the ban if the total open interest goes below 80%.
\nWhat’s the relationship between price and open interest data?<\/strong><\/span><\/p>\n

\"Relationship
Relationship between Price and Open Interest<\/figcaption><\/figure>\n

If price is in an\u00a0increasing trend and OI is increasing, it’s interpreted as Fresh Longs being build and is a Bullish Signal.
\nIf\u00a0price is in an\u00a0increasing trend and OI is decreasing, it’s interpreted as Short Covering\u00a0being a short term correction in an otherwise downtrend.
\nIf\u00a0price is in an decreasing\u00a0trend and OI is increasing, it’s interpreted as Fresh Shorts\u00a0being added\u00a0and is a Bearish\u00a0Signal.
\nIf\u00a0price is in an decreasing\u00a0trend and OI is decreasing, it’s interpreted as Long Unwinding\u00a0being a short term profit booking\u00a0in an otherwise uptrend.
\nWhat’s the difference between volume and Open Interest (OI)?<\/strong><\/span>
\nVolume is the total number of contracts traded in a given time period, and open interest in a security is the number of open contracts at a particular period of time.<\/p>\n","protected":false},"author":12,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[358],"ht_kb_tag":[709,710,711,712,713,714],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/1854"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=1854"}],"version-history":[{"count":0,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/1854\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=1854"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=1854"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=1854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}