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open interest

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Querist : Anonymous (Querist)
27 April 2010 please tell in detail ....wat does mean open interest v hear in business new...wat happen if shares added in open interest...how does it affect the market........

27 April 2010 open interest is used in respect of derivative. contract are made between two parties in derivative and these are settled on last thursday of every month. contract with are not settled is called open interest.

29 April 2010 open interest means the contracts which are traded and purchased for the particular derivative may be call/put option.... the increase in open interest means there are buyers who assume the market to move in tht direction...




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