$ORDER 15-minute contract open interest rose 6.17%; price fell 1% over the same period.
Let’s use this data to talk about open interest.
Open interest (OI) is the total number of contracts in the market that have not yet been closed. It measures the size of open positions, not trading volume.
When the price barely moves but open interest rises significantly, it suggests both sides are adding to their positions. This usually makes a larger subsequent price move more likely, though its direction is uncertain.
Sizing positions based on stop-loss distance is much more reliable than placing trades based on gut feeling.
#ORDER
This is not trading advice.
Let’s use this data to talk about open interest.
Open interest (OI) is the total number of contracts in the market that have not yet been closed. It measures the size of open positions, not trading volume.
When the price barely moves but open interest rises significantly, it suggests both sides are adding to their positions. This usually makes a larger subsequent price move more likely, though its direction is uncertain.
Sizing positions based on stop-loss distance is much more reliable than placing trades based on gut feeling.
#ORDER
This is not trading advice.