Open interest

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Open interest is the sum of all open positions in a futures or options contract .

Open interest increases by one for every stock exchange transaction that creates a new open position for both the buyer and the seller (A buys a contract for the first time, B sells a contract short for the first time).

Open interest remains unchanged in a transaction that opens one position and closes another (A sells his contract to C).

Open interest decreases when the transaction closes a position for both buyer and seller (C sells to B).