$RED 15-minute contract open interest rose 30.93%; the price rose 4.05% over the same period.
Taking this figure as a cue, let's talk about open interest.
When both buyers and sellers open new positions, open interest increases; when both sides close positions, it decreases; when one side opens a position and the other closes one, open interest remains unchanged.
When open interest rises but spot trading volume doesn't keep up, a rally often relies more heavily on leverage. These moves can come quickly and go just as quickly.
Indicators can fail, but risk management shouldn't be skipped: thinking ahead about what to do if you're wrong matters more than guessing correctly.
Taking this figure as a cue, let's talk about open interest.
When both buyers and sellers open new positions, open interest increases; when both sides close positions, it decreases; when one side opens a position and the other closes one, open interest remains unchanged.
When open interest rises but spot trading volume doesn't keep up, a rally often relies more heavily on leverage. These moves can come quickly and go just as quickly.
Indicators can fail, but risk management shouldn't be skipped: thinking ahead about what to do if you're wrong matters more than guessing correctly.