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On February 2nd, there were 46,685 trades in a corn futures contract. This means there were 46,685 buyers and 46,685 sellers.

- Of the 46,685 buyers:
- 20,973 were closing out positions.
- 25,712 were entering into new positions.

- Of the 46,685 sellers:
- 17,766 were closing out positions.
- 28,919 were entering into new positions.

What is the impact of the day’s trading on open interest?

Answer :

Final answer:

The day's trading had an impact of 15,892 on open interest.

Explanation:

Open interest is a key metric in futures trading that represents the total number of outstanding contracts in a market. It provides insights into the liquidity and activity of the market.

In this scenario, we have the following information:

  • Total number of trades: 46,685
  • Number of buyers: 46,685
  • Number of sellers: 46,685
  • Buyers closing out positions: 20,973
  • Buyers entering into new positions: 25,712
  • Sellers closing out positions: 17,766
  • Sellers entering into new positions: 28,919

To calculate the impact on open interest, we need to consider the net change in open interest for both buyers and sellers.

For buyers, the net change in open interest is calculated as the difference between the number of buyers entering into new positions and the number of buyers closing out positions:

Net change in open interest for buyers = Buyers entering into new positions - Buyers closing out positions

Substituting the given values:

Net change in open interest for buyers = 25,712 - 20,973 = 4,739

Similarly, for sellers, the net change in open interest is calculated as the difference between the number of sellers entering into new positions and the number of sellers closing out positions:

Net change in open interest for sellers = Sellers entering into new positions - Sellers closing out positions

Substituting the given values:

Net change in open interest for sellers = 28,919 - 17,766 = 11,153

The overall impact on open interest is the sum of the net change in open interest for buyers and sellers:

Overall impact on open interest = Net change in open interest for buyers + Net change in open interest for sellers

Substituting the calculated values:

Overall impact on open interest = 4,739 + 11,153 = 15,892

Therefore, the day's trading had an impact of 15,892 on open interest.

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https://brainly.com/question/15408217

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Final answer:

The day's trading had an impact of 15,892 on open interest.

Explanation:

Open interest is a key metric in futures trading that represents the total number of outstanding contracts in a market. It provides insights into the liquidity and activity of the market.

In this scenario, we have the following information:

  • Total number of trades: 46,685
  • Number of buyers: 46,685
  • Number of sellers: 46,685
  • Buyers closing out positions: 20,973
  • Buyers entering into new positions: 25,712
  • Sellers closing out positions: 17,766
  • Sellers entering into new positions: 28,919

To calculate the impact on open interest, we need to consider the net change in open interest for both buyers and sellers.

For buyers, the net change in open interest is calculated as the difference between the number of buyers entering into new positions and the number of buyers closing out positions:

Net change in open interest for buyers = Buyers entering into new positions - Buyers closing out positions

Substituting the given values:

Net change in open interest for buyers = 25,712 - 20,973 = 4,739

Similarly, for sellers, the net change in open interest is calculated as the difference between the number of sellers entering into new positions and the number of sellers closing out positions:

Net change in open interest for sellers = Sellers entering into new positions - Sellers closing out positions

Substituting the given values:

Net change in open interest for sellers = 28,919 - 17,766 = 11,153

The overall impact on open interest is the sum of the net change in open interest for buyers and sellers:

Overall impact on open interest = Net change in open interest for buyers + Net change in open interest for sellers

Substituting the calculated values:

Overall impact on open interest = 4,739 + 11,153 = 15,892

Therefore, the day's trading had an impact of 15,892 on open interest.

Learn more about impact of trading on open interest here:

https://brainly.com/question/15408217

#SPJ14

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