Learning Thread On Open Interest
From the book "The new Trading for a living"
A long thread please read and retweet if you find useful.

Open interest is the number of contracts held by buyers or owed by short sellers in
any derivative market, such as futures or options

1/n

Stock market shares are traded for as long as the company that listed them stays in business as an independent unit.

2/n

Most shares are held as long positions, with only a
small percentage of shorts. In futures and options, on the other hand, the total size of
long and short positions is always identical, due to the fact that they are contracts for
future delivery.

3/n

When someone wants to buy a contract, someone else has to sell it to them, i.e., go short. If you want to buy a call option for 100 shares of Google, another trader has to sell you that option; in order for you to be long, someone else has to
be short.

4/n

Open interest equals the total long or the total short positions
Futures and options contracts are designed to last for only a set period of time.

5/n

Thread on some pro tips which will help you improve your trading to next level(My 6 year experience summed up in a thread)

1. The more you sweat during practice , the less you will bleed during war - " Take time in learning , take small steps , increase your observation power ,

try to learn from gopd traders around you , the day you stop learning , you're dead. Never hesitate to ask queries to your friends/seniors/juniors. Always be curious to explore new things. Learning is a never ending process that will keep your mind alive and working.

2. Dont Try To Copy Anyone -
Everyone is different ! Dont get fascinated by other people's performance. You are your own hero , everyone has its own mindset/capital/skills/strength/weaknesses. Dont disturb your mental peace by comparing your trading results with someone else's.

Comparison will always lead to disappointment , if you ever feel to compare , compare with someone who is doing lesser than you. Everyone is unique , try to find your edge and work without thinking of what others are doing or what anyone will say. Just focus on what you are doing

3. Never loose more than X% of your capital in a single go -

If you follow this rule , i promise you will never blow up your account or be a looser at trading"Always risk x% of your capital in a trade/day/week. For me its 0.5% per trade , for you it can be any figure you like.