🐋 Beyond reading the charts, there’s another basic concept to understand: open interest
Every open contract has both a long and a short position, so the total number of longs and shorts in the market is always equal.
The higher the open interest, the more positions may be liquidated or stopped out during sharp price swings. That’s why open interest is often viewed as a measure of how crowded the market is.
Back to the market: $BTC is at 83420.3 (24h +0.31%).
Leverage amplifies the outcome, not the accuracy of your judgment. The higher the leverage, the less room for error.
Every open contract has both a long and a short position, so the total number of longs and shorts in the market is always equal.
The higher the open interest, the more positions may be liquidated or stopped out during sharp price swings. That’s why open interest is often viewed as a measure of how crowded the market is.
Back to the market: $BTC is at 83420.3 (24h +0.31%).
Leverage amplifies the outcome, not the accuracy of your judgment. The higher the leverage, the less room for error.