The possibility of gain or loss due to movements in the general level of the stock market. In this way, buyers an sellers are protected against the possibility of contract default. It is a mechanism to reflect the correct status of all the open positions at any point of time. The length of time before delivery. The difference between the long and short open positions in any one future held by an individual or group.
Offer Indicates a willingness to sell a futures contract at a given price.
The total number of futures or options contracts of a given commodity that have not yet been offset by an opposite futures or option transaction nor fulfilled by delivery of the commodity or option exercise. Each open transaction has a buyer and a seller, but for calculation of open interest, only one side of the contract is counted. Open outcry Method of public auction for making verbal bids and offers in the trading pits or rings of futures exchanges. Open positions Contracts which have been initiated and are not yet offset by a subsequent sale of purchase, or by making or taking delivery. Option A contract that conveys the right, but not the obligation, to buy or sell a particular item at a certain price for a limited time.