Open Interest helps confirm the strength of a price trend. For instance: A rising price with increasing OI signals a strong, ongoing trend. A falling price with rising OI suggests…
Higher Open Interest indicates more market participants and greater liquidity, making it easier to enter or exit positions. Low Open Interest suggests lower liquidity and higher risk due to limited…
In options trading, Open Interest shows how many contracts are active at any given strike price. High OI at a particular strike price indicates significant interest in that strike, while…