Open Interest - sangramnayak1/derivative_market_backtest GitHub Wiki

Types of OI Build-Up

Short Build-Up vs Long Build-Up

Factor Short Build-Up Long Build-Up
Definition Increase in short positions with a drop in stock price. Increase in long positions with a rise in stock price.
Market Sentiment Bearish (expecting prices to fall). Bullish (expecting prices to rise).
Price Movement Price declines as selling pressure builds. Price increases as buying pressure builds.
Open Interest (OI) OI increases as traders take more short positions. OI increases as traders take more long positions.
Objective Traders aim to profit from price declines. Traders aim to profit from price increases.
When It Happens Common during negative news, weak fundamentals, or panic selling. Common during positive news, strong fundamentals, or market rallies.
Risk Risk of sudden price rallies due to short covering. Risk of price drops due to profit booking or market corrections.

Short Build-Up vs Short Covering

Factor Short Build-Up Short Covering
Definition Increase in short positions with price declines. Closing of short positions by buying back shares.
Market Sentiment Bearish (expecting prices to fall). Bullish (as prices rise due to buying pressure).
Price Movement Price declines due to selling pressure. Price increases due to sudden buying pressure.
Triggers Negative news, weak fundamentals, speculation. Positive news, technical triggers, loss recovery.
Impact on Market Reinforces downward momentum. Leads to a sharp upward rally or "short squeeze."

Long Unwinding vs Short Covering

Factor Long Unwinding Short Covering
Definition Selling previously held long positions. Buying back stocks to close previously held short positions.
Market Sentiment Signals weakening bullish sentiment or potential bearish outlook. Signals weakening bearish sentiment or potential bullish outlook.
Action Type Selling action. Buying action.
Impact on Stock Price Adds selling pressure, leading to a potential decline in prices. Reduces selling pressure, causing a potential rise in prices.
Trader’s Intent Exiting positions to lock profits or limit losses. Closing short positions to avoid further losses.

Long Build-Up vs Long Unwinding

Factor Long Build-Up Long Unwinding
Definition Opening new long positions by buying stocks or contracts. Closing existing long positions by selling them.
Market Sentiment Indicates bullish sentiment or rising confidence in the stock. Indicates weakening bullish sentiment or potential bearish outlook.
Action Type Buying action. Selling action.
Impact on Stock Price Adds buying pressure, leading to potential price increases. Adds selling pressure, leading to potential price declines.
Trader’s Intent Entering positions to benefit from expected price rises. Exiting positions to lock profits or limit losses.

Future Trends - Reference

Factor Definition
Price Gainer Here you can find the stocks whose price has increased during the market hours.
Price Losers Here you can find the stocks whose price has decreased during the market hours.
OI Gainers Here you can find the stocks whose OI increases.
OI Losers Here you can find the stocks whose OI decreases.
Long Buildup Here you can find the stocks whose future price and open interest has increased.
Short Buildup The Short build up means to find the stocks whose future price has decreased and open interest increased.
Long Unwinding The Long Unwinding meaning is to find the stocks whose future price and open interest has decreased.
Short Covering The Short covering means to find the stocks whose futures price increases and open interest decreases.
Symbol It represents the stock symbol. If you click on the symbol you can find detailed information about the stocks.
LTP The full form of LTP is the Last Traded Price. The price at which the last trade occurs between the buyer and a seller in the stock exchange. The LTP value varies in the live market.
Price Change The price change will show you the data on the percentage change in the price of a particular stock from yesterday’s close to today.
OI Change The OI change will show you the data on the percentage of OI change of a particular stock from yesterday’s close to today.
Price Change The price change will show you the data on the percentage change in the price of a particular stock from yesterday’s close to today.
Trend It represents the stock trend whether the stock is long buildup, short buildup, long unwinding, short covering.

How Futures are traded using Futures Trend feature? By using this futures trend you can find the stock futures now which occurred in price top gainers share, price losers, OI gainers, OI losers, long buildup, short buildup, long unwinding, short covering. You can also check the data for the next 3 months Nifty futures trend according to the date.

What is Futures Trend? Futures Trend represent all the expiry wise futures stocks list. Here you can select the date to view the expiry wise stocks along with the trend. You can also select all, on the top right side to see the combined NSE open interest for all expiry. As of now we are listing only futures in stock market and index futures data only.

Features available in Futures Trend For Futures in trading, you need to track all the stocks expiry wise Futures trading. You can select the corresponding expiry date to see the Future stocks in NSE of that particular expiry.

Here you can see all the data of price gainers, pritp, price change, OI Change, trends in future.

Price vs Futures Open Interest If you want to find the Price vs Futures Open Interest chart you can click on the stock to get the detailed information. Here you can find price vs futures open interest for last three months.