🐋 $BANK 1-hour contract open interest increased by 12.11%; price rose 6.43% over the same period.
To see whether money is flowing into or out of futures, the most direct metric is open interest—but it’s important to interpret it correctly.
Every open contract has both a long and a short position, so open interest itself has no long or short bias. Across the entire market, the number of long positions always equals the number of short positions.
A sharp drop in open interest often follows a sudden rally or plunge. It suggests some leverage has been flushed out, and sentiment may then ease at times.
Indicators can be inaccurate, so don’t skip your stop-loss: thinking ahead about what you’ll do if your read is wrong matters more than guessing correctly.
#BANK
To see whether money is flowing into or out of futures, the most direct metric is open interest—but it’s important to interpret it correctly.
Every open contract has both a long and a short position, so open interest itself has no long or short bias. Across the entire market, the number of long positions always equals the number of short positions.
A sharp drop in open interest often follows a sudden rally or plunge. It suggests some leverage has been flushed out, and sentiment may then ease at times.
Indicators can be inaccurate, so don’t skip your stop-loss: thinking ahead about what you’ll do if your read is wrong matters more than guessing correctly.
#BANK