Let’s talk about open interest.
If both sides of a trade are opening new positions, open interest rises; if both sides are closing positions, it falls; if one side opens while the other closes, it stays the same.
Honestly, I hadn’t noticed this next point before: when open interest rises rapidly in the short term, volatility often increases afterward. Check your leverage and how far you are from liquidation.
Coin in the example: $BTC . Current price: 79611.8, 24h: -2.34%.
Markets always have surprises, so decide in advance what you’ll do if your judgment is wrong.
Crypto is risky. Trade with caution.
If both sides of a trade are opening new positions, open interest rises; if both sides are closing positions, it falls; if one side opens while the other closes, it stays the same.
Honestly, I hadn’t noticed this next point before: when open interest rises rapidly in the short term, volatility often increases afterward. Check your leverage and how far you are from liquidation.
Coin in the example: $BTC . Current price: 79611.8, 24h: -2.34%.
Markets always have surprises, so decide in advance what you’ll do if your judgment is wrong.
Crypto is risky. Trade with caution.