The formula for OI, or Open Interest, depends on the context. OI can refer to different things depending on the field.
Here are two common interpretations:
1. Open Interest in Financial Markets:
- Open Interest (OI) in financial markets represents the total number of outstanding contracts for a specific asset at a particular time.
- Formula: It's calculated by adding up the number of outstanding buy and sell orders for the asset.
- Example: If there are 100 outstanding buy orders and 50 outstanding sell orders for a particular stock option, the OI for that option would be 150.
2. Open Interest in the Context of a Company:
- Open Interest (OI) in this context refers to the total number of outstanding orders, typically for goods or services, that a company has received but not yet fulfilled.
- Formula: OI = Number of outstanding orders.
- Example: If a company has received 200 orders for a product but has only shipped 100, the OI for that product would be 100.
It's essential to clarify the context to determine the appropriate formula for OI.
