How to Use Volume and Open Interest to Enhance Your Profit?
Many traders investing in the futures market end up losing money on the futures market and options market. The most common error they make is that they’re not evaluating the open interest. Open Value is one of the key criteria in futures market trading. If we begin to evaluate open interest in volume and price, the traders will have a high likelihood of success in their trades and will also improve their profitability in the futures and options market. Understanding Open Interest with respect to Volume Open Interest is a particular statistical feature when trading in the market of futures and options. Open Value is the total number of contracts currently in existence and is not offset by transactions being terminated. Open Value varies from volume. Volume is the number of contracts which are traded daily. When you buy a future / option then you open a position and the person who sold you open a position, too. The volume increases by one, and open interest will rise by one as w...