{"id":344292,"date":"2026-11-12T10:00:59","date_gmt":"2026-11-12T04:30:59","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=344292"},"modified":"2026-11-12T10:00:59","modified_gmt":"2026-11-12T04:30:59","slug":"open-interest-and-pcr-explained","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/open-interest-and-pcr-explained\/","title":{"rendered":"Open Interest and PCR Explained: How to Read Build-Up, Unwinding and the Put-Call Ratio Without Fooling Yourself"},"content":{"rendered":"

Open interest counts contracts still open. Rising price with rising OI is a long build-up. PCR is put OI divided by call OI. Neither predicts direction with certainty.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

Open interest and put-call ratio are two indicators from the futures and options market. Open interest is the number of contracts that remain open, and rising open interest with rising price points to fresh buying, while rising open interest with falling price points to fresh selling. The put-call ratio divides put open interest by call open interest and is read as a gauge of sentiment, not as a forecast.<\/p>\n<\/p><\/div>\n

Open interest and PCR are two of the most quoted numbers in option chain commentary, and also two of the most misread. A single figure on a screen can sound conclusive, but each number needs context to mean anything.<\/p>\n

This guide explains what open interest is, how it differs from volume, the four price and OI combinations, how to calculate the put-call ratio, and the reasons these signals fail.<\/p>\n

Click Here – Get Free Investment Predictions<\/strong><\/a><\/p>\n

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