Trading Mantra

Understanding Open Interest

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Understanding the concept

Open interest measures outstanding contracts and should be interpreted alongside price, volume and context.

Why context matters

Markets are dynamic. A concept should be understood alongside liquidity, volatility, timeframe, position size and the broader risk framework.

Practical learning focus

Build a written process, test assumptions and avoid treating educational material as a guarantee or personalised recommendation.

Educational disclaimer: This article is for educational information only and does not guarantee returns or constitute personalised financial advice.

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