【Quick explainer】What does open interest (OI) mean?
If both sides of a trade are opening new positions, open interest rises; if both sides are closing positions, it falls; if one side opens while the other closes, it stays the same.
Rising open interest only means that the total number of positions in the contract has increased. It doesn’t tell you whether bulls or bears are stronger, since every new position has someone going long and someone going short.
By the way: $BTC Current price: 83815.32, 24h +0.94%.
Leverage isn’t a must. It’s perfectly fine to stick to spot trading until you’re familiar with it.
DYOR, and trade responsibly.
If both sides of a trade are opening new positions, open interest rises; if both sides are closing positions, it falls; if one side opens while the other closes, it stays the same.
Rising open interest only means that the total number of positions in the contract has increased. It doesn’t tell you whether bulls or bears are stronger, since every new position has someone going long and someone going short.
By the way: $BTC Current price: 83815.32, 24h +0.94%.
Leverage isn’t a must. It’s perfectly fine to stick to spot trading until you’re familiar with it.
DYOR, and trade responsibly.