$EVAA 15-minute contract open interest rose 4.6%, with an open interest value of approximately $12.26 million; over the same period, the price rose 12.64%.
Let’s use this figure to talk about open interest.
Open interest is the total number of contracts that remain open in the market. It measures the size of outstanding contracts, not trading volume.
A rising price with falling open interest is generally interpreted as short positions closing out; a falling price with declining open interest is often seen as longs stopping out. These are rules of thumb, not definitive conclusions.
Unusually high readings often come with more extreme price swings. In such moments, it’s better to reduce leverage than to place a big bet.
#EVAA
Let’s use this figure to talk about open interest.
Open interest is the total number of contracts that remain open in the market. It measures the size of outstanding contracts, not trading volume.
A rising price with falling open interest is generally interpreted as short positions closing out; a falling price with declining open interest is often seen as longs stopping out. These are rules of thumb, not definitive conclusions.
Unusually high readings often come with more extreme price swings. In such moments, it’s better to reduce leverage than to place a big bet.
#EVAA
