$PEPE 5-minute contract open interest increased by 2.88%; the price fell 1.1% over the same period.
A question every beginner asks: What is open interest?
Contract open interest reflects the combined demand for leverage and hedging. Some positions are simply used to hedge spot exposure.
The larger the open interest, the more contract positions can influence prices. A sudden spike or plunge could trigger a cascade of liquidations.
Don’t change your plan because of a single indicator, and never gamble borrowed money on a particular reading.
Personal notes. Make your own trading decisions.
A question every beginner asks: What is open interest?
Contract open interest reflects the combined demand for leverage and hedging. Some positions are simply used to hedge spot exposure.
The larger the open interest, the more contract positions can influence prices. A sudden spike or plunge could trigger a cascade of liquidations.
Don’t change your plan because of a single indicator, and never gamble borrowed money on a particular reading.
Personal notes. Make your own trading decisions.