What does open interest (OI) mean? Many people can't explain it!
If both the buyer and seller open new positions in a trade, open interest increases; if both close their positions, it decreases; if one opens a position while the other closes one, open interest stays the same.
The higher the open interest, the more positions may be liquidated or stopped out during sharp price swings. That's why open interest is often used as an indicator of how active a contract is.
After a loss, don't immediately double down to try to win it back—you'll often end up losing even more.
$BTC 82356 (+0.73%)
This is just my personal opinion, not investment advice.
If both the buyer and seller open new positions in a trade, open interest increases; if both close their positions, it decreases; if one opens a position while the other closes one, open interest stays the same.
The higher the open interest, the more positions may be liquidated or stopped out during sharp price swings. That's why open interest is often used as an indicator of how active a contract is.
After a loss, don't immediately double down to try to win it back—you'll often end up losing even more.
$BTC 82356 (+0.73%)
This is just my personal opinion, not investment advice.