What Is Open Interest in Options?

Open interest in options refers to the total number of outstanding contracts in the marketplace that have not been exercised, expired, or offset by delivery. It indicates the liquidity and activity level of that particular option contract. High open interest indicates much interest and potential for trading, while low open interest might suggest less liquidity and harder-to-fill trades. It differs from trading volume, which counts the total number of contracts traded in a given period.

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