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Explain what is meant by open position/open interest. Why does the open position/open interest usually decline during the month preceding the delivery month? On a
Explain what is meant by open position/open interest. Why does the open position/open interest usually decline during the month preceding the delivery month? On a particular day, there are 2000 trades in a particular futures contract. Of the 2000 traders on the long side of the market, 1400 were closing out position and 600 were entering into new positions. Of the 2000 traders on the short side of the market, 1200 were closing out position and 800 were entering into new positions. What is the impact of the days trading on open position?
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