analysis · beginner
Open interest
Open interest is the number of outstanding derivative contracts that have not been closed or settled.
Rising open interest with rising prices can indicate new longs and shorts entering the market.
Falling open interest often signals position unwinding rather than fresh initiation.
NSE publishes OI by strike and expiry for index and stock derivatives.
Unusual OI build-up at specific strikes is watched ahead of weekly expiries.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.