$EVAA 1-hour contract open interest rose 5.36%; the price rose 14.89% over the same period.
Let’s use this data to break down open interest.
An increase in open interest means new positions are being opened; a decrease means positions are being closed, either voluntarily or through liquidations.
A sharp short-term change in open interest means traders are opening or closing positions in a concentrated way, and volatility often increases afterward.
When trading with leverage, first work out whether you can withstand the worst-case scenario, then consider what the signals are saying.
Let’s use this data to break down open interest.
An increase in open interest means new positions are being opened; a decrease means positions are being closed, either voluntarily or through liquidations.
A sharp short-term change in open interest means traders are opening or closing positions in a concentrated way, and volatility often increases afterward.
When trading with leverage, first work out whether you can withstand the worst-case scenario, then consider what the signals are saying.