$UAI 1-hour contract open interest rose 21.65%, with an open interest value of approximately $3.78 million; during the same period, the price fell 32.81%.
Let’s talk about what’s behind these numbers.
Open interest (OI) is the total number of contracts that have not yet been closed in the market. It measures the size of positions, not trading volume.
A price rise with falling open interest is generally interpreted as shorts closing their positions; a price drop with falling open interest is often seen as longs closing theirs. These are rules of thumb, not definitive conclusions.
With leveraged trading, first consider whether you can handle the worst-case outcome, then look at what the indicators are saying.
Let’s talk about what’s behind these numbers.
Open interest (OI) is the total number of contracts that have not yet been closed in the market. It measures the size of positions, not trading volume.
A price rise with falling open interest is generally interpreted as shorts closing their positions; a price drop with falling open interest is often seen as longs closing theirs. These are rules of thumb, not definitive conclusions.
With leveraged trading, first consider whether you can handle the worst-case outcome, then look at what the indicators are saying.
