$VELVET -minute futures open interest increased by 9.65%, with the value of open positions at approximately $476,000; the price rose 0.63% over the same period.
A beginner’s question: What is open interest?
Futures open interest reflects both leverage and hedging demand. Some positions are simply held to hedge spot-market risk.
The larger the open interest, the greater the impact futures positions can have on price. A sharp move could trigger a cascade of liquidations.
Don’t place an order during the most volatile moment. Wait for the candlestick to close and settle before taking another look.
#VELVET
A beginner’s question: What is open interest?
Futures open interest reflects both leverage and hedging demand. Some positions are simply held to hedge spot-market risk.
The larger the open interest, the greater the impact futures positions can have on price. A sharp move could trigger a cascade of liquidations.
Don’t place an order during the most volatile moment. Wait for the candlestick to close and settle before taking another look.
#VELVET