$Q 1-hour futures open interest increased by 32.15%; during the same period, the price rose by 0.19%.
Let’s use this figure to break down open interest.
Futures open interest reflects the combined demand for leverage and hedging; some positions are simply used to hedge spot-market risk.
Rising prices and rising open interest are often seen as a sign of longs actively entering the market, while falling prices and rising open interest are often seen as a sign of new shorts actively entering.
Indicators can be inaccurate, but stop-losses shouldn’t be absent: thinking ahead about what to do if you’re wrong is more important than guessing correctly.
Let’s use this figure to break down open interest.
Futures open interest reflects the combined demand for leverage and hedging; some positions are simply used to hedge spot-market risk.
Rising prices and rising open interest are often seen as a sign of longs actively entering the market, while falling prices and rising open interest are often seen as a sign of new shorts actively entering.
Indicators can be inaccurate, but stop-losses shouldn’t be absent: thinking ahead about what to do if you’re wrong is more important than guessing correctly.