When combined, Open Interest and volume provide a comprehensive view of market sentiment: High volume and rising OI: Indicates strong participation in a trend, suggesting that the trend is likely…

When a new contract series (for example, next month's F&O contracts) is introduced, Open Interest in the current series will typically decrease as positions are rolled over to the new…

Very low Open Interest indicates that there is little interest in the contract. This can happen in illiquid markets or for contracts with limited trading volume. Low OI can increase…