How to Use Open Interest for Intraday Trading or Trading?

Open Interest (OI) is one of the very useful indicators in future and options (F&O) to trend in a particular stock or broader market index trading in the derivatives market. You can use the open interest (OI) data to find out the sentiments of the traders towards a particular stock or indices. You can also analyze the current trend and expected price movement.

How to Use Open Interest for Intraday Trading or Trading?

For intraday trading or for short-term trading in the F&O segment with the short-term weekly or monthly you can use the open interest to get insight of the stocks trading under this segment. And to use the OI effectively in trading you need to properly read, understand and interpret the open interest (OI) data with examples. That we are going to discuss here.