$AVA 1 Hourly contract open interest rose 8.34%; the price rose 4.83% over the same period.
A beginner asks: What is 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 while the other closes one, open interest stays the same.
High open interest is not inherently bullish or bearish. It simply means more positions are being wagered, and the tug-of-war between the two sides is more intense.
Indicators can fail, so risk management is essential: deciding in advance what to do if your judgment is wrong matters more than whether your prediction is right.
A beginner asks: What is 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 while the other closes one, open interest stays the same.
High open interest is not inherently bullish or bearish. It simply means more positions are being wagered, and the tug-of-war between the two sides is more intense.
Indicators can fail, so risk management is essential: deciding in advance what to do if your judgment is wrong matters more than whether your prediction is right.