The total number of outstanding option or futures contracts that have not yet been settled or closed.
Open interest represents the total number of derivative contracts (options or futures) for a particular strike and expiry that are currently outstanding in the market and have not been squared off, exercised, or expired. Rising open interest along with rising price suggests fresh long positions are being built, while rising open interest with falling price suggests fresh short positions. Traders track open interest across strikes to gauge where support and resistance levels may form.
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