Derivatives Basics
What Is Open Interest
Open interest is one of the most important context signals for options and futures traders, especially when paired with price movement and volume.
Article summary
Why this lesson matters
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Open interest is one of the most important context signals for options and futures traders, especially when paired with price movement and volume.
Practical context
How to use this explainer
Use this page as a plain-English starting point, then move into the linked Riddra routes when you need live market context or related workflows.
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Key takeaways
What to remember
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Open interest shows the number of active contracts
It becomes more useful when paired with price behavior
It can support buildup and unwind interpretations