Open Interest

Open interest is the total number of futures or options contracts that are still open, meaning they have been created and not yet closed, exercised or expired. It applies only to derivatives, because every contract has a buyer and a seller and exists until one of them closes it. While volume counts how many contracts traded today, open interest counts how many are outstanding right now.

Open interest vs volume#

A contract can trade many times without changing open interest, as positions pass from one trader to another.

How open interest changes#

Whether a trade changes open interest depends on whether each side is opening or closing a position:

Reading open interest with price#

Traders combine open interest with price direction to judge whether money is flowing into or out of a move:

These are interpretations, not certainties, and they work best alongside volume and price structure.

Open interest in crypto#

Crypto traders watch open interest on perpetual futures closely. A rapid rise in open interest combined with high Funding Rates suggests many leveraged positions on one side. When the price moves against them, forced liquidations can cascade, producing sharp spikes. Falling open interest after such a move shows positions were wiped out. See Liquidations in Crypto and Perpetual Futures.

Open interest in options#

For options, open interest is reported per strike and expiry. Large open interest at a strike can show where traders are positioned and can influence prices near expiration, as market makers adjust their hedges. Concentrated put open interest is sometimes read as protection demand; concentrated call open interest as speculation or covered call selling. See Options Open Interest Analysis and Dealer Gamma Exposure.

Where to find it#

• Futures exchanges publish daily volume and open interest for each contract, usually the next morning.
• Option chains at brokers show open interest per strike, updated daily.
• Crypto data sites and exchanges show live or frequently updated open interest for perpetuals.
• The CFTC's weekly Commitments of Traders report breaks down futures open interest by type of trader.

Liquidity and open interest#

Contracts with high open interest usually have more liquidity and tighter spreads. Options at strikes with very low open interest can be costly to trade and hard to exit. When choosing between similar contracts, open interest is a useful liquidity check alongside volume.

Frequently asked questions#

Is high open interest bullish?#

Not by itself. High open interest means many contracts are open; whether that is bullish or bearish depends on price direction and who holds the positions.

When is open interest updated?#

For exchange traded futures and options, it is usually updated once a day after settlement. Many crypto exchanges update it continuously.

Do stocks have open interest?#

No. Open interest applies to derivatives such as futures and options, not to shares.

Sources#

• Wikipedia, Open interest
• U.S. Commodity Futures Trading Commission, Commitments of Traders