The open interest on silver futures at a particular time is the number of ________.
A) all outstanding silver futures contracts
B) long and short silver futures positions counted separately on a particular trading day
C) silver futures contracts traded during the day
D) silver futures contracts traded the previous day

Question

Quizplus · Accepted Answer

Open interest represents the total number of outstanding contracts in the market for a particular commodity or financial instrument. In the case of silver futures, the open interest would be the total number of outstanding silver futures contracts at a specific point in time. It includes both long and short positions, but they are not counted separately. It reflects the overall activity and interest in the underlying asset.

The Open Interest on Silver Futures at a Particular Time