Definitions

open-interest

Noun

(uncountable)

  1. (finance) The total number of contracts outstanding between market participants in a market for futures, options, or other derivatives.
English Wiktionary. Available under CC-BY-SA license.
  • Link/Cite
Link to this page

Cite this page

MLA Style

"Open-interest." YourDictionary. LoveToKnow. www.yourdictionary.com/open-interest.

APA Style

Open-interest. (n.d.). In YourDictionary. Retrieved from https://www.yourdictionary.com/open-interest

open interest - Investment & Finance Definition

The number of futures or options contracts of a given commodity that are currently being traded. These contracts have not yet been offset by an opposite transaction or filled by delivery of the commodity. Open interest increases when a new buyer purchases a contract from a new seller. It decreases when an existing owner of a futures contract sells to an existing short (a trader who has sold something that he or she doesn’t own). However, open interest is unaffected if a new buyer purchases from an existing long or a new seller sells to an existing short. Rising open interest indicates increased interest in the market because there are more contracts beings traded.

When contracts are new, their open interest is limited, making them illiquid, which lessens their attractiveness to trade. It will take months, if not several years, to build up their open interest, and thus their liquidity. Liquidity is impaired when open interest levels are approximately below 5,000 contracts or the average daily trading volume is below approximately 1,000 contracts.

Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
  • Link/Cite
Link to this page

Cite this page

MLA Style

"Open-interest." YourDictionary. LoveToKnow. www.yourdictionary.com/open-interest.

APA Style

Open-interest. (n.d.). In YourDictionary. Retrieved from https://www.yourdictionary.com/open-interest

  • Dictionary
  • Thesaurus
  • Examples
    • See in a sentence
    • Example articles
  • Quotes
    • Famous Quotes
    • Quote Articles
  • Spanish
    • Spanish-English Translation
    • Reference
  • Reference
    • Education
    • ESL
    • Grammar
    • Abbreviations
    • Biography
    • Books & Literature
    • Examples
    • Foreign Languages
    • Resources
    • Slideshows
  • Word Finder
    • 4 Pics 1 Word Answers
    • Anagram Solver
    • Scrabble Dictionary
    • Unscramble
    • Word Cookies Cheat
    • Scrabble Checker
    • Words With Friends Cheat
    • More Games
Share
  • Dictionary
  • Thesaurus
  • Examples
    • See in a sentence
    • Example articles
  • Quotes
    • Famous Quotes
    • Quote Articles
  • Spanish
    • Spanish-English Translation
    • Reference
  • Reference
    • Education
    • ESL
    • Grammar
    • Abbreviations
    • Biography
    • Books & Literature
    • Examples
    • Foreign Languages
    • Resources
    • Slideshows
  • Word Finder
    • 4 Pics 1 Word Answers
    • Anagram Solver
    • Scrabble Dictionary
    • Unscramble
    • Word Cookies Cheat
    • Scrabble Checker
    • Words With Friends Cheat
    • More Games
Share
  • Home
  • Dictionary Definitions
  • open-interest

WORDS NEAR open-interest IN THE DICTIONARY


  • open house
  • open-houses
  • open housing
  • Open ID
  • open-interest
  • open interface
  • open Internet
  • open interval
  • open-interval
  • open-intervals
Word Finder Scrabble® points: 14 More on Word Finder →
Send your feedback to YourDictionary
Get our free Amazon Alexa Skills!

Join YourDictionary today

By continuing, you agree to our Terms of Use and Privacy Policy.

Please set a username for yourself.
People will see it as Author Name with your public flash cards.