A note: $APR 15-minute contract open interest increased by 8.78%, with an open interest value of approximately $4.74 million; the price over the same period was -9.11%.
People often ask how to interpret open interest. This is how I understand it.
Contract open interest represents the combined demand for speculation and hedging. Some positions are held solely to hedge spot exposure.
When open interest changes rapidly in the short term, it means people are opening or closing positions in large amounts, and the price range often widens afterward.
Unusually high readings are generally accompanied by more dramatic volatility. At such times, it’s better to reduce leverage rather than increase your position.
#APR
People often ask how to interpret open interest. This is how I understand it.
Contract open interest represents the combined demand for speculation and hedging. Some positions are held solely to hedge spot exposure.
When open interest changes rapidly in the short term, it means people are opening or closing positions in large amounts, and the price range often widens afterward.
Unusually high readings are generally accompanied by more dramatic volatility. At such times, it’s better to reduce leverage rather than increase your position.
#APR