Open Interest

The total number of outstanding options or futures contracts that have not been settled, closed, or delivered. Unlike volume, which counts every transaction, open interest tracks the net number of open positions and is a key gauge of money flow and market participation. Rising open interest alongside a price move suggests the trend has conviction, while declining open interest may indicate the move is losing steam. Options traders watch open interest to identify the most liquid strike prices and gauge where the "smart money" is positioned.