How to calculate Nifty Open Interest?
Nifty Open Interest measures the number of outstanding contracts at the tip of every day. Actually, Nifty Open Interest solely records half the outstanding contracts. For every buyer, there should even be a seller, however. This doesn’t have an effect on however we use open interest. Open Interest also can be taken because of the flow of cash coming into and exiting a market.
If Nifty Open Interest is increasing then this can be a symptom that there’s new buying going on. And traders expect this trend to continue. Conversely, if Open Interest is declining it shows that traders are taking their cash out of the market, or liquidating. Therefore the current trend can doubtlessly finish shortly. Similarly, if Nifty Open Interest decreases when prices advance, it’s a symptom that no new buying is going on and therefore the current uptrend is losing steam.
Nifty Open Interest measures the number of outstanding contracts at the tip of every day. Actually, Nifty Open Interest solely records half the outstanding contracts. For every buyer, there should even be a seller, however. This doesn’t have an effect on however we use open interest. Open Interest also can be taken because of the flow of cash coming into and exiting a market.
If Nifty Open Interest is increasing then this can be a symptom that there’s new buying going on. And traders expect this trend to continue. Conversely, if Open Interest is declining it shows that traders are taking their cash out of the market, or liquidating. Therefore the current trend can doubtlessly finish shortly. Similarly, if Nifty Open Interest decreases when prices advance, it’s a symptom that no new buying is going on and therefore the current uptrend is losing steam.