$ARC 15-minute contract open interest increased by 172.29%, with an open interest value of approximately $24.34 million; during the same period, the price rose 0.1%.
Let’s use this figure to break down open interest.
Open interest refers to the total number of outstanding contracts in the market. It measures the number of contracts, not trading volume.
A rapid change in open interest over a short period means that someone is opening or closing positions in large quantities. The price range that follows often widens.
Extreme readings are often accompanied by more dramatic volatility. At times like these, it’s better to reduce your position rather than add to it.
Let’s use this figure to break down open interest.
Open interest refers to the total number of outstanding contracts in the market. It measures the number of contracts, not trading volume.
A rapid change in open interest over a short period means that someone is opening or closing positions in large quantities. The price range that follows often widens.
Extreme readings are often accompanied by more dramatic volatility. At times like these, it’s better to reduce your position rather than add to it.