Crypto 101 📚 Open Interest
Every open contract corresponds to both one long position and one short position, so the total number of long positions and short positions across the market is always equal.
If both the buyer and seller in a trade are opening new positions, open interest increases; if both are closing positions, open interest decreases; if one is opening a position and the other is closing one, open interest stays the same.
The first page of my study notes says: Understand it before placing an order.
Here’s a market update: $BTC is quoted at 83500.01 (24h +0.6%).
#BTC
Every open contract corresponds to both one long position and one short position, so the total number of long positions and short positions across the market is always equal.
If both the buyer and seller in a trade are opening new positions, open interest increases; if both are closing positions, open interest decreases; if one is opening a position and the other is closing one, open interest stays the same.
The first page of my study notes says: Understand it before placing an order.
Here’s a market update: $BTC is quoted at 83500.01 (24h +0.6%).
#BTC