$BR 15-minute contract open interest increased by 8.08%, with an open interest value of about $6.91 million; over the same period, the price was down 0.13%.
Let’s use this data to talk about open interest.
When both buyers and sellers open new positions, open interest increases; when both sides close positions, it decreases; when one side opens a position and the other closes one, open interest stays the same.
The higher the open interest, the more contract positions can drive price movements, and a sharp swing could trigger a cascade of liquidations.
The same data can mean very different things in different market conditions, so don’t apply a single rule mechanically.
Let’s use this data to talk about open interest.
When both buyers and sellers open new positions, open interest increases; when both sides close positions, it decreases; when one side opens a position and the other closes one, open interest stays the same.
The higher the open interest, the more contract positions can drive price movements, and a sharp swing could trigger a cascade of liquidations.
The same data can mean very different things in different market conditions, so don’t apply a single rule mechanically.