Futures mechanics
What is Open Interest in futures and how does it signal the structural validity of an underlying trend?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Open interest is the total number of outstanding futures contracts not yet closed, offset, or delivered, reflecting aggregate market commitment.
How it works
Rising open interest alongside a price trend suggests new money confirming direction; declining open interest can signal position unwinding.
An example
Increasing open interest during a rally suggests fresh buying supports the trend.
Risk & limitations
Open interest alone doesn't predict direction; it must be read alongside price action.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.