What is meaning of Open Interest...???

Open Interest is word used in derivative trading.

Open Interest is total number of contracts which remains outstanding by market participants at the end of day. 

In other words Open Interest are those contracts which are not squared off on same day after entering in position.  

Ideally traders gets confused between open interest & volumes but there is huge difference. Anyway let's try to understand Open Interest by easy example. 

Please note we are not considering profit or loss in below example. (click on image if full image is not displayed)

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Please note we have considered only lots and not lot size or volumes in above example. 

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Please note this blog post is for education purpose only. While utmost care is taken while writing this post but any human error cant be ruled out and we apologize for same in advance.