$MAGMA 15-minute futures open interest rose 4.55%, with the value of open positions at approximately $7.05 million; during the same period, the price rose 5.34%.
A beginner’s key question: What is open interest?
Every open contract has both a long and a short position, so open interest itself doesn’t indicate whether the market is bullish or bearish. The total number of long positions and short positions in the market is always equal.
The larger the open interest, the more significantly contract positions can affect the price. A sharp move could trigger a cascade of liquidations.
Calculating position size backward from your stop-loss distance is far more reliable than placing orders based on gut feeling.
#MAGMA
A beginner’s key question: What is open interest?
Every open contract has both a long and a short position, so open interest itself doesn’t indicate whether the market is bullish or bearish. The total number of long positions and short positions in the market is always equal.
The larger the open interest, the more significantly contract positions can affect the price. A sharp move could trigger a cascade of liquidations.
Calculating position size backward from your stop-loss distance is far more reliable than placing orders based on gut feeling.
#MAGMA