$AIO 1-hour contract open interest rose 24.01%, with an open interest value of approximately $3.78 million; the price rose 12.42% over the same period.
Let’s use this data to break down open interest.
Open interest and trading volume are two different metrics: trading volume shows how much has changed hands over a given period, while open interest shows how many positions are still open at the moment.
Open interest often falls sharply after periods of intense volatility, indicating that some leverage has been flushed out. Short-term volatility may also cool down as a result.
Before trading with leverage, first consider whether you can tolerate the worst-case outcome, then think about what the indicators are saying.
Let’s use this data to break down open interest.
Open interest and trading volume are two different metrics: trading volume shows how much has changed hands over a given period, while open interest shows how many positions are still open at the moment.
Open interest often falls sharply after periods of intense volatility, indicating that some leverage has been flushed out. Short-term volatility may also cool down as a result.
Before trading with leverage, first consider whether you can tolerate the worst-case outcome, then think about what the indicators are saying.