reguarding open interest

G

glahn

Hi people

I have a few questions about the open interest in futures.

Is the open interest which I can see in a futures chart today the number of outstanding contracts that remained at the end of yesterdays trading session?

Are the number of outstanding contracts each day added/ subtracted from the previous day`s number of outstanding contracts? Or is each day`s number of outstanding contracts unrelated to the previous day`s number?

An example:
yesterday`s open interest: 2137
today`s open interest: 2213

The open interest has gone up by 76 over one day.

Thanks very much for reply!
 
Yep todays has nothing to do with yesterdays

If you see the market going up and open interest is going up,

just take the open interest number and divide it by 2, and that will tell you how many bulls there are in the market.
 
I was kind of trying to make a joke. When the market goes up and open interest goes up they say more bulls are coming into the market.

I think, yeah, but who is selling to them?
 
Yea I understand your point.

I have a friend who always says when the market goes up ''check how much volume up enter the market'' and my response is ''ok, but for 1 buyer there is 1 seller so isn't that subjective"
 
I keep hearing on TV that speculators are driving up the market.

How do they do that?

I try but it never works.

No matter how urgently I try to buy, someone always seems just as urgent to sell to me.

But you must admit, open interest is aptly named. If the mkt goes up and open interest goes up you can conclude that there sure does seem to be a lot of interest in this particular mkt at this particular time and price.
 
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