$NEAR 15-minute contract open interest increased by 2.52%; the price fell by 2.92% over the same period.
Let’s use this data to talk about open interest.
Open interest refers to the total number of contracts that have not been closed in the market. It measures the number of open positions, not trading volume.
Open interest often drops rapidly after sharp volatility, indicating that some leverage has been flushed out. Short-term volatility may sometimes cool down as a result.
Understanding this indicator helps you avoid being misled by a single number; it is not a way to accurately predict tops and bottoms.
Let’s use this data to talk about open interest.
Open interest refers to the total number of contracts that have not been closed in the market. It measures the number of open positions, not trading volume.
Open interest often drops rapidly after sharp volatility, indicating that some leverage has been flushed out. Short-term volatility may sometimes cool down as a result.
Understanding this indicator helps you avoid being misled by a single number; it is not a way to accurately predict tops and bottoms.
