Open Interest Explained
Understand open interest, market participation and how it differs from trading volume.
Outstanding contracts
Open interest measures contracts that remain open. It is different from volume, which measures trading during a period. Every contract has two sides, so growing open interest alone cannot prove that buyers or sellers will win. Check whether a source reports contracts, asset units or notional value.
Price and participation
If price rises while open interest rises, the market has more outstanding exposure during the move. This can be consistent with new participation, but does not reveal whether new longs or hedged positions dominate. Rising price with falling open interest can reflect position closure.
Use changes with context
Compare the same contract and measurement unit over a defined interval. Notional open interest can rise just because price rises. Combine it with price structure and actual volume; do not treat an isolated percentage change as a directional signal.
Do not infer direction from participation
Hypothetical worked example. If open contracts increase from 100,000 to 110,000, open interest rises 10%. Every contract has counterparties, so this change alone does not show that 10,000 directional long bets will win. Price movement and contract definitions still matter.
Is open interest measured by FuturesRadar?
Not in the current score. Volume is turnover during a period; open interest is outstanding contracts at a point in time. A volume increase must not be labeled an open-interest increase.
Verify the assumptions
Check the input window, fees and data availability before applying this example. For the exact software behavior and coverage limits, read the scanner methodology. Examples explain arithmetic and interpretation; they are not historical performance claims.