Open Interest

Discuss Open Interest at the Derivatives within the Traderji.com - Discussion forum for Stocks Commodities & Forex; What's best place to find OI? I have been on NSE website, and OI ...


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Derivatives Discuss Futures & Options in securities whose value is derived from an underlying instrument.


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  #11  
Old 28th January 2008, 04:34 AM
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Default Re: open interest



What's best place to find OI?

I have been on NSE website, and OI is mentioned there as a value, and not as a percentage.

Ban is imposed when OI crossess 95% limit, but where to search for this on a daily basis?
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  #12  
Old 9th April 2008, 07:05 PM
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Default Re: Open Interest

In simple terms role of Open interest in derivative trading is similar to the role of Volume and stock trading. For stocks, if price move is supported by Volume then it is more reliable. You can interpret OI in the same terms for the direction of F&O price move.

Difference between Volumn and OI -
As there are many strategies available in derivative mkt - like buy call at price A and sell call at Price B for same month, buy call at price A for next month and sell call at price B for current month etc, the OI value may not give very clear message in reality. Hence it has to be looked carefully keeping in mind its limitations.

It does help in assessing sentiment but sooner or later, everything gets reflected in Price. So if one pays attention to the price chart and uses Technical Analysis then that should help in taking investment/trading calls.

Happy Trading.
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