$BTW 5-minute contract open interest increased by 477.63%; the price fell by 2.27% over the same period.
Let’s use this figure to talk about open interest.
An increase in open interest means new positions are being opened, while a decrease means positions are being closed—whether voluntarily or through liquidation.
If open interest rises but spot trading volume doesn’t follow, a price increase may rely more heavily on leverage. Moves like this can happen fast, and often fade just as quickly.
Before opening a leveraged position, work out whether you can withstand the worst-case outcome. Then consider what the indicators are telling you.
It’s your money, so the decision is yours.
Let’s use this figure to talk about open interest.
An increase in open interest means new positions are being opened, while a decrease means positions are being closed—whether voluntarily or through liquidation.
If open interest rises but spot trading volume doesn’t follow, a price increase may rely more heavily on leverage. Moves like this can happen fast, and often fade just as quickly.
Before opening a leveraged position, work out whether you can withstand the worst-case outcome. Then consider what the indicators are telling you.
It’s your money, so the decision is yours.