What’s the difference between trading volume and open interest?
First, what they are: For Binance USDⓈ-M perpetual contracts, open interest is tracked separately for each trading pair. Data from a single platform does not represent total open interest across the entire market.
Why it matters: The higher the open interest, the more positions may face liquidation or stop-loss orders during sharp price swings. That’s why open interest is often used as an indicator of how crowded leveraged positions are.
Coin mentioned in the topic: $BTC is at 83541.45, up 0.67% over 24 hours.
Be extra skeptical of claims promising consistently high returns.
#BTC
First, what they are: For Binance USDⓈ-M perpetual contracts, open interest is tracked separately for each trading pair. Data from a single platform does not represent total open interest across the entire market.
Why it matters: The higher the open interest, the more positions may face liquidation or stop-loss orders during sharp price swings. That’s why open interest is often used as an indicator of how crowded leveraged positions are.
Coin mentioned in the topic: $BTC is at 83541.45, up 0.67% over 24 hours.
Be extra skeptical of claims promising consistently high returns.
#BTC