we have discussed different scenarios/effects on the open interests when one futures contract is traded in the futures exchange. Please provide a detailed summary of these different scenarios below.
Below is the detailed summary of different scenarios/ correlation of open interest when one future contract is traded in the future exchange:-
Price | Volume | Open interest | Market |
Rising | Up | Up | Strong |
Rising | Down | Down | Weak |
Declining | Up | Up | Weak |
Declining | Down | Down | Strong |
Market condition | Impact |
Bullish | an increasing open interest in rising market |
Bearish | an declining open interest in rising market |
Bearish | an increasing open interest in falling market |
Bullish | an declining open interest in falling market |
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