Derivatives
Open Interest
Definition
What is Open Interest?
The number of outstanding derivative contracts that have not been closed or settled.
Example in practice
How This Looks in Practice
Open interest rises when new buyers and sellers create positions.
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Related Terms
Derivatives
Derivative
A contract whose value depends on an underlying asset, rate, index, or event.
DerivativesUnderlying Asset
The asset, rate, index, or reference on which a derivative's value is based.
DerivativesNotional Amount
The reference amount used to calculate derivative payments, which may exceed the cash initially exchanged.
Derivatives StrategiesCovered Call
A strategy that owns the underlying asset and sells call options against it.