$ICNT 1-hour contract open interest rose 9.31%, with an open interest value of approximately $6.14 million; the price rose 5.3% over the same period.
Let’s break down open interest based on these figures.
Open interest represents the size of positions in the futures market: the higher the open interest, the more positions may be liquidated if the price moves sharply.
The higher the open interest, the greater the impact futures positions can have on the price. A sudden surge or drop could trigger a cascade of liquidations.
When trading with leverage, first consider whether you can withstand the worst-case scenario, then think about what the signals are telling you.
Let’s break down open interest based on these figures.
Open interest represents the size of positions in the futures market: the higher the open interest, the more positions may be liquidated if the price moves sharply.
The higher the open interest, the greater the impact futures positions can have on the price. A sudden surge or drop could trigger a cascade of liquidations.
When trading with leverage, first consider whether you can withstand the worst-case scenario, then think about what the signals are telling you.