Hi I am new in the market. Can you please explain me the difference between ‘Contracts’ and ‘Open Interest’ value in Option chain of Nifty/ any stock?
Contract is the agreement between buyer and seller how this deal is processed and
Open interest refers to total number of contracts that have been created but have not yet been closed out. In other words, it refers to the total number of open positions till date.
Contract is agreement between two parties (Buyer and Seller) while Open Interest tells you the number of outstanding contracts in the market.
You can learn about Open Interest in detail here: