$DOOD 1Open interest in hourly contracts increased by 5.01%; the price rose 0.86% over the same period.
When I first got into crypto, I always thought that an increase in open interest meant money was flowing in. It took me a while to understand: rising open interest means both longs and shorts are adding positions. The number of long and short positions is equal, so it’s not the same thing as money flowing in.
The higher the open interest, the greater the impact of contract trading on the price. A sharp move could trigger a cascade of forced liquidations.
With leveraged trading, first work out whether you can withstand the worst-case scenario, then look at what the indicators are telling you.
#DOOD
When I first got into crypto, I always thought that an increase in open interest meant money was flowing in. It took me a while to understand: rising open interest means both longs and shorts are adding positions. The number of long and short positions is equal, so it’s not the same thing as money flowing in.
The higher the open interest, the greater the impact of contract trading on the price. A sharp move could trigger a cascade of forced liquidations.
With leveraged trading, first work out whether you can withstand the worst-case scenario, then look at what the indicators are telling you.
#DOOD