Stocks & Commodities V. 26:1 (65): Futures For You by Dan O誰eil

Stocks & Commodities V. 26:1 (65): Futures For You by Dan O誰eil
Item# \V26\C01\130NEL.PDF
Availability: In Stock

Product Description

Futures For You by Dan O誰eil


What is open interest and what can it tell me about a market?

Open interest is the total number of futures or options on futures contracts that have not yet been offset or fulfilled by delivery. Open interest is an indicator of the depth or liquidity of a market, which influences the ability to buy or sell at or near a given price. Because good and timely fills can be hard to obtain in illiquid markets, many traders see very low open interest in a market as a reason to steer clear.

As an analysis tool, changes in open interest can be used to help confirm technical signals, helping traders gauge how much money is flowing into or out of a given market. This is helpful when looking at a trending market. If open interest is increasing, then the trend will probably continue in its present direction, either up or down. And if open interest is declining, this can be interpreted as a signal that the current trend may be about to end.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at users can view the S&C Digital Edition in the subscriber's section on

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order