$BERA 15-minute contract open interest rose 16.66%, with a value of approximately $2.19 million; over the same period, the price fell 0.35%.
Let’s use this figure to talk about open interest.
Every increase in open positions necessarily involves both a long and a short, so the idea that “rising open interest means bullish” is a common misconception.
Open interest often drops sharply after periods of intense volatility, indicating that a substantial amount of leverage has been flushed out. Short-term sentiment may cool as a result.
The point of understanding an indicator is to avoid being spooked by a single number—not to use it to pinpoint tops and bottoms.
DYOR, and trade rationally.
Let’s use this figure to talk about open interest.
Every increase in open positions necessarily involves both a long and a short, so the idea that “rising open interest means bullish” is a common misconception.
Open interest often drops sharply after periods of intense volatility, indicating that a substantial amount of leverage has been flushed out. Short-term sentiment may cool as a result.
The point of understanding an indicator is to avoid being spooked by a single number—not to use it to pinpoint tops and bottoms.
DYOR, and trade rationally.