Data: $PTB ｜15-minute open interest +6.01%｜Price +14.09%
Definition: Contract open interest reflects the combined demand for leverage and hedging. Some positions are held solely to hedge spot exposure.
How to read it: Open interest often drops rapidly after sharp rallies or sell-offs, indicating that a significant amount of leverage has been flushed out. Short-term sentiment may then ease somewhat.
Keep more margin for leveraged positions so a sudden move doesn’t wipe them out.
Definition: Contract open interest reflects the combined demand for leverage and hedging. Some positions are held solely to hedge spot exposure.
How to read it: Open interest often drops rapidly after sharp rallies or sell-offs, indicating that a significant amount of leverage has been flushed out. Short-term sentiment may then ease somewhat.
Keep more margin for leveraged positions so a sudden move doesn’t wipe them out.