$BILL 1-hour contract open interest rose 53.22%, with the value of open positions at about $688,000; the price was unchanged over the same period.
Let’s use this figure to break down open interest.
Every open contract has both a long and a short position, so open interest itself has no long or short bias. Across the entire market, the total number of long positions always equals the total number of short positions.
A sharp drop in open interest often follows a sudden rally or sell-off. This suggests some leverage has been flushed out, and volatility may then cool off.
Don’t place an order at the most volatile moment. Wait for the price action to play out before deciding.
Let’s use this figure to break down open interest.
Every open contract has both a long and a short position, so open interest itself has no long or short bias. Across the entire market, the total number of long positions always equals the total number of short positions.
A sharp drop in open interest often follows a sudden rally or sell-off. This suggests some leverage has been flushed out, and volatility may then cool off.
Don’t place an order at the most volatile moment. Wait for the price action to play out before deciding.