Market Notes｜$OP ｜15-minute position +4.16%｜Price +4.15%
Definition: Open interest reflects the size of positions in contracts. The higher the open interest, the more positions may be liquidated if prices fluctuate sharply.
Common interpretations: Rising prices with falling open interest are often seen as being driven by short covering, while falling prices with falling open interest are generally interpreted as longs closing out. These are rules of thumb, not definitive conclusions.
With leveraged trading, first work out whether you can withstand the worst-case scenario, then look at what the indicators are saying.
#OP
Definition: Open interest reflects the size of positions in contracts. The higher the open interest, the more positions may be liquidated if prices fluctuate sharply.
Common interpretations: Rising prices with falling open interest are often seen as being driven by short covering, while falling prices with falling open interest are generally interpreted as longs closing out. These are rules of thumb, not definitive conclusions.
With leveraged trading, first work out whether you can withstand the worst-case scenario, then look at what the indicators are saying.
#OP