Market update, simplified: $WLFI 1-hour contract open interest rose 23.16%; the price was down 0.26% over the same period.
Open interest moved, but my position is still zero. I’m just here to listen in.
On a serious note, every open contract has both a long and a short, so open interest alone can’t tell you whether the market is net long or short. Across the whole market, the total number of longs always equals the total number of shorts.
Sizing your position based on your stop-loss distance is far more reliable than placing trades on a whim.
Open interest moved, but my position is still zero. I’m just here to listen in.
On a serious note, every open contract has both a long and a short, so open interest alone can’t tell you whether the market is net long or short. Across the whole market, the total number of longs always equals the total number of shorts.
Sizing your position based on your stop-loss distance is far more reliable than placing trades on a whim.