Open Interest
The total number of outstanding futures contracts that have not been settled, delivered, or offset. A measure of market participation.
Open interest (OI) counts the total number of open — i.e., unresolved — futures contracts in a given market. Every futures transaction involves a buyer and a seller; OI increases by 1 when a new long and a new short are created, and decreases by 1 when an existing position is closed.
OI is distinct from volume: volume counts all contracts traded in a session, OI counts those still outstanding at the end of the session. Rising OI alongside a price trend suggests new money entering, validating the move; falling OI during a trend suggests position liquidation.
OI is concentrated in the front month but migrates to the back month during the roll period.
Related Terms
Calendar Spread
A spread trade that is simultaneously long one contract month and short another month of the same futures product.
IntermediateFront Month
The nearest-expiry futures contract with the highest liquidity and trading volume at any given time.
BeginnerLead Month
The futures contract month with the highest current open interest and volume — synonymous with front month.
BeginnerLimit Up / Limit Down
Exchange-imposed maximum daily price move for a futures contract. Trading halts or is restricted when the price hits the limit.
IntermediatePosition Limit
The maximum number of futures contracts a single trader or entity may hold, set by the CFTC and/or the exchange to prevent market manipulation.
AdvancedRollover
Closing a near-expiry futures position and simultaneously reopening it in the next contract month to maintain exposure without taking delivery.
IntermediateSpeculator
A market participant who takes on futures risk with no underlying physical exposure, seeking to profit from price moves.
Beginner