How Does the Open Interest Indicator Work?

Open Interest refers to the number of open positions on futures contracts (futures or options). When the indicator value is above zero, it means that more open positions than closed ones are available and the type of orders (Market, Limit, or Stop) that were used to enter the position is not important. Open Interest does not determine the direction of the position but only the number of positions in the market (both long and short positions in total).

No open interest is physically available for shares.