Definition
Open Interest PCR vs Volume PCR
The OI-based PCR uses open interest while the volume-based PCR uses traded volume, giving complementary sentiment reads.
The OI PCR divides put open interest by call open interest, reflecting the standing positioning of writers; it changes slowly and shows where the broader bias sits. The volume PCR divides put volume by call volume, capturing the day's fresh activity and shifting faster intraday.
Indian traders watch both for Nifty and Bank Nifty: the OI PCR for the underlying structure of support and resistance, and the volume PCR for intraday momentum and short-term sentiment swings. Reading them together avoids over-reacting to a single figure.
Related terms
- Open InterestOpen interest is the total number of outstanding futures or options contracts that have not yet been closed.
- Open Interest vs VolumeVolume counts contracts traded in a period, while open interest counts the total contracts still outstanding and not yet closed.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.