What Open Interest Tells Us About Trends 📢

What is Open Interest? http://www.financial-spread-betting.c... 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.