$HYPE 15-minute futures open interest rose 11.62%; the price was up 0.07% over the same period.
To see most directly whether leveraged capital is moving in or out, look at open interest—but you need to know how to read it.
Open interest and trading volume are two different things: trading volume shows how much has changed hands over a period, while open interest shows how many contracts are still outstanding at a given moment.
The higher the open interest, the more noticeably futures positions can affect prices. A sudden spike or drop could trigger a cascade of liquidations.
Unusually high readings are often accompanied by more volatility. At times like these, it’s better to scale back positions rather than add to them.
To see most directly whether leveraged capital is moving in or out, look at open interest—but you need to know how to read it.
Open interest and trading volume are two different things: trading volume shows how much has changed hands over a period, while open interest shows how many contracts are still outstanding at a given moment.
The higher the open interest, the more noticeably futures positions can affect prices. A sudden spike or drop could trigger a cascade of liquidations.
Unusually high readings are often accompanied by more volatility. At times like these, it’s better to scale back positions rather than add to them.