$W 1-hour contract open interest rose 5.06%; the price increased by 2.71% over the same period.
Let’s use this data to talk about open interest.
When both buyers and sellers open new positions, open interest rises; when both sides close positions, it falls; when one side opens a position and the other closes one, open interest remains unchanged.
The higher open interest builds up, the more contract flows can drive prices, and a single sharp move could trigger a cascade of liquidations.
Learning to read indicators is easy. The hard part is sticking to your plan when the market gets extremely volatile.
#W
Let’s use this data to talk about open interest.
When both buyers and sellers open new positions, open interest rises; when both sides close positions, it falls; when one side opens a position and the other closes one, open interest remains unchanged.
The higher open interest builds up, the more contract flows can drive prices, and a single sharp move could trigger a cascade of liquidations.
Learning to read indicators is easy. The hard part is sticking to your plan when the market gets extremely volatile.
#W