Indicator notes | $OP | 15-minute open interest +2.55% | Price -2.38%
Definition: Open interest reflects the overall size of positions in a contract. The higher the open interest, the more positions may be liquidated when the price moves sharply.
Common interpretations: Rising prices with falling open interest are often seen as being driven by short covering; falling prices with falling open interest are often seen as longs closing their positions. These are only interpretations, not conclusions.
With leveraged positions, first work out whether you can withstand the worst-case outcome, then consider what the signals are saying.
#OP
Not investment advice. Don’t copy this blindly.
Definition: Open interest reflects the overall size of positions in a contract. The higher the open interest, the more positions may be liquidated when the price moves sharply.
Common interpretations: Rising prices with falling open interest are often seen as being driven by short covering; falling prices with falling open interest are often seen as longs closing their positions. These are only interpretations, not conclusions.
With leveraged positions, first work out whether you can withstand the worst-case outcome, then consider what the signals are saying.
#OP
Not investment advice. Don’t copy this blindly.