Ask : Open interest

[za_xc03]

I new in futures market. Can anyone here able told me what is importance "OPEN INTEREST" and what is that O.I in fact or only need neglect for this O.I or someone can show me place to made reference on this O.I .TQ for your help

 

[Rhody Trader]

Open interest is the total number of long contracts matched against short contracts. So basically it's the total number of contracts involved in active positions. Watching OI lets you know whether positions are being built or reduced, which can be useful knowledge.

 

[za_xc03]

Thank you Rhody

 

[BoyTrader]

Does anyone know where I can find CBOT US T-Note 10 Year 'Open Interest' figures? Are these figures published daily at a certain time?

Thanks

 

[options]

Does anyone know where I can find CBOT US T-Note 10 Year 'Open Interest' figures? Are these figures published daily at a certain time?

Thanks

Have a look on the CBOT web site.

 

[BoyTrader]

Thanks Options, much appreciated although im still a little unsure of how to use it? would I be correct in saying the 'net' change is the only significant figure to look at day to day? so if negative figure market sentiment shows stronger sellers held positions overnight.

Here's what I found by way of example, net change in bold

QRPB214 PRELIMINARY GLOBEX BULLETIN 04/22/09 16:03
TRADE DATE: 04/22/09 INTEREST RATE FUTURES PAGE: 6

GLOBEX -- GLOBEX -- GLOBEX PRIOR PRIOR RTH GLOBEX LIFE OF CONTRACT
OPENING HIGH LOW LAST & PT.CHGE RTH SETT OPEN INTREST VOLUME HIGH LOW 177066
10YTN
JUN 09 122'125 122'200 121'270 122'020 -110 122'130 1007849 -10620 618019 126'040 111'040

 

[BoyTrader]

Ignore the last post if you havent already Lol....

The negative figure whether in an 'up' or 'down' trend means the current trend is losing momentum and conversely a positive figure means the current trend is gaining momentum, the conviction of the momentum can be measured by the actual positive/negative number relative to the total contracts traded that day; i'm using a % based model. A good lagging tool to gauge longer term market direction! combine this with 'LDB' and you can see what players are doing what.