🐋 $MAGMA 15-minute contract open interest increased by 4.55%, with the value of open positions at around $7.05 million; meanwhile, the price rose 5.34%.
To see whether money is flowing into or out of contracts, start by looking at open interest—but make sure you interpret the number correctly.
An increase in open interest means new positions are being opened; a decrease means positions are being closed, either voluntarily or through liquidation.
Open interest often drops sharply after periods of intense volatility, indicating that some leverage has been flushed out. Short-term volatility may sometimes ease as a result.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
To see whether money is flowing into or out of contracts, start by looking at open interest—but make sure you interpret the number correctly.
An increase in open interest means new positions are being opened; a decrease means positions are being closed, either voluntarily or through liquidation.
Open interest often drops sharply after periods of intense volatility, indicating that some leverage has been flushed out. Short-term volatility may sometimes ease as a result.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.