Re: What Are Open Interest Share Addition and Substraction
columbus...IMHO a buy and sell pair contributes to one number addtition in OI.
i.e when there is a seller{short seller} of RIL futures @ 1300 there has to be a buyer and they both contribute to addition of OI.
when the contract is covered , it results in reduction of OI.
is it right or am i missing out something here
Say Reliance at 1300/- there is a section section people who think
it will touch 1500/- soon ,on the other hand some believe it will touch
1100/- soon.The first category people will BUY ( either stock futures or
stock options) ,and the other will SELL (short either stock futures or
stock option).The first category will ADD to open interest and other
SUBSTRACT to open interest.
it will touch 1500/- soon ,on the other hand some believe it will touch
1100/- soon.The first category people will BUY ( either stock futures or
stock options) ,and the other will SELL (short either stock futures or
stock option).The first category will ADD to open interest and other
SUBSTRACT to open interest.
i.e when there is a seller{short seller} of RIL futures @ 1300 there has to be a buyer and they both contribute to addition of OI.
when the contract is covered , it results in reduction of OI.
is it right or am i missing out something here