What is Open Interest indicator?
The Open Interest (OI) Indicator on FYERS charts is a key technical tool used primarily in futures and options trading. It reflects the total number of open contracts that remain unsettled, helping traders measure market participation and trend strength.
What does the OI indicator show?
- Open Interest represents the number of active positions—contracts that are open but not yet closed or settled.
- It differs from Volume, which counts only the number of contracts traded in a single day.
- OI is cumulative and updates as new contracts are added or closed, making it valuable for tracking market behavior over time.
Why it matters for traders?
- Insight into participation: Rising OI generally indicates increased trader activity and interest.
- Trend validation: When OI rises with price, it supports the trend’s strength. Falling OI with price movement can suggest weakening momentum.
- Market sentiment: It helps detect whether market participants are initiating new positions (bullish or bearish) or unwinding existing ones.
What if...
| Condition | Implication |
|---|
| OI is rising while price moves up | Bullish trend confirmation |
| OI is falling while price rises | Possible short covering or weak uptrend |
| OI is flat with large price moves | May indicate lack of conviction or liquidity |
Unlike volume, Open Interest doesn't reset daily—it helps you track how committed the market is to a trend over time.
Last updated: 30 Jun 2025