When the stock prices move up and open interest on the counter also moves upward, it is taken as a sign of a long buildup. The signal is considered more reliable if the volume on the counter has also seen an increase.
Coming to the buildup of fresh short positions, when the stock prices move downward and open interest on the counter increases, it is taken as a sign of a short build-up.
A significant uptick in futures open interest signifies a substantial growth in the number of active, unexpired futures contracts in a specific security.
When the stock prices move up and open interest on the counter also moves upward, it is taken as a sign of a long buildup. The signal is considered more reliable if the volume on the counter has also seen an increase.
A significant uptick in futures open interest signifies a substantial growth in the number of active, unexpired futures contracts in a specific security.