Open Interest
Open interest is a term used in the financial markets to describe the total number of outstanding contracts that have not been settled or closed. It is a measure of the liquidity of a particular market and is used to gauge the level of activity in a particular security or commodity. Open interest is calculated by taking the total number of contracts that have been opened and subtracting the total number of contracts that have been closed. Open interest is typically used to measure the level of activity in a particular market, as well as to gauge the level of liquidity in a particular security or commodity.
History of Open Interest
Open interest has been used in the financial markets for centuries. It was first used in the commodities markets in the late 19th century, and has since become a widely used measure of market activity. Open interest is used to measure the level of activity in a particular market, as well as to gauge the level of liquidity in a particular security or commodity. Open interest is also used to measure the level of risk in a particular market, as it is an indication of the amount of money that is at risk in a particular market.
Comparison of Open Interest
| Security | Open Interest |
|---|---|
| Stock | 100 |
| Bond | 200 |
| Commodity | 300 |
Summary
Open interest is a term used in the financial markets to describe the total number of outstanding contracts that have not been settled or closed. It is a measure of the liquidity of a particular market and is used to gauge the level of activity in a particular security or commodity. Open interest is calculated by taking the total number of contracts that have been opened and subtracting the total number of contracts that have been closed. Open interest is typically used to measure the level of activity in a particular market, as well as to gauge the level of liquidity in a particular security or commodity. For more information about open interest, please visit the websites of the Chicago Mercantile Exchange, the New York Stock Exchange, and the Commodity Futures Trading Commission.
See Also
- Options
- Futures
- Options Clearing Corporation
- Commodity Futures Trading Commission
- Margin
- Volatility
- Liquidity
- Risk
- Derivatives
- Contracts
