Cryptocurrency Q&A
How to read oi?
How to read oi?
ZenBalance
Thu Oct 10 2024
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7 answers
1641
I came across some text that included the abbreviation 'oi' and I'm not sure how to interpret it. Is 'oi' a common acronym or does it have a specific meaning in certain contexts? How should I read or understand 'oi'?
7 answers
Valentino
Sat Oct 12 2024
Open Interest, abbreviated as OI, represents the total number of outstanding contracts in a futures or options market that have not yet been fulfilled or offset by an equal and opposite contract.
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Caterina
Sat Oct 12 2024
This metric is a key indicator of market sentiment and liquidity, as it reflects the total amount of capital tied up in a particular market. OI is constantly evolving as traders enter and exit positions.
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CryptoAlchemist
Sat Oct 12 2024
When a new position is opened, either through the purchase of a futures contract or the writing of an options contract, the OI increases. Conversely, when an existing position is closed or liquidated, the OI decreases.
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QuasarGlider
Sat Oct 12 2024
For instance, let's consider a hypothetical scenario where Trader A decides to buy 100 shares of stock XYZ in the futures market. Simultaneously, Trader B sells 100 shares of the same stock in the futures market.
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Caterina
Fri Oct 11 2024
This transaction results in the creation of one open contract, as Trader A has taken the long position and Trader B has taken the short position. Therefore, the Open Interest for Stock XYZ would be 100, signifying the existence of one open contract.
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