$REZ 15-minute futures open interest rose 9.85%, with a notional value of about $4.18 million; meanwhile, the price fell 5.15%.
A beginner’s burning question: What does open interest actually tell us?
Open interest represents the overall size of outstanding futures positions. The higher it is, the more positions could be liquidated if the price moves sharply.
If open interest rises but spot trading volume doesn’t keep pace, the market may be driven mainly by leverage—and moves like these can be quick to arrive and quick to reverse.
Indicators may be inaccurate, but stop-losses shouldn’t be absent: deciding in advance what to do if you’re wrong matters more than guessing correctly.
#REZ
This is not investment advice. Don’t follow this trade.
A beginner’s burning question: What does open interest actually tell us?
Open interest represents the overall size of outstanding futures positions. The higher it is, the more positions could be liquidated if the price moves sharply.
If open interest rises but spot trading volume doesn’t keep pace, the market may be driven mainly by leverage—and moves like these can be quick to arrive and quick to reverse.
Indicators may be inaccurate, but stop-losses shouldn’t be absent: deciding in advance what to do if you’re wrong matters more than guessing correctly.
#REZ
This is not investment advice. Don’t follow this trade.
