📐 Today’s concept: Open interest
If both parties in a trade are opening new positions, open interest increases; if both are closing positions, it decreases; if one opens while the other closes, it stays the same.
Open interest should be viewed alongside price and funding rates. Looking only at changes in open interest to judge whether prices will rise or fall can easily lead to misinterpretation.
Beginners should start by practicing with low leverage and small amounts.
Market update: $BTC is trading at 82356.01, up 0.82% over 24 hours.
If both parties in a trade are opening new positions, open interest increases; if both are closing positions, it decreases; if one opens while the other closes, it stays the same.
Open interest should be viewed alongside price and funding rates. Looking only at changes in open interest to judge whether prices will rise or fall can easily lead to misinterpretation.
Beginners should start by practicing with low leverage and small amounts.
Market update: $BTC is trading at 82356.01, up 0.82% over 24 hours.