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June 14, 2026
The Dispatch

Definition

Open Interest (OI)

Open interest is the total number of outstanding (not yet settled) derivative contracts in a futures or options market.

Open interest counts all contracts currently open, rising when new positions are created and falling when they are closed. Unlike volume (which counts all trades), OI shows how much money is committed to a position at a point in time.

Traders read OI with price: rising price plus rising OI suggests a strong uptrend (fresh buying), while rising price with falling OI hints at short-covering. In India, F&O OI data and changes are widely tracked, alongside SEBI's OI-based position limits and surveillance.

Related terms

  • VolatilityVolatility measures how much and how quickly a price moves up and down — higher volatility means bigger, faster swings.
  • Margin (Trading)Margin is the collateral a trader must deposit to cover potential losses on a position, comprising components such as SPAN, exposure and mark-to-market margin in the Indian derivatives market.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.