$BMT 1-hour contract open interest rose 9.01%, with a position value of approximately $7.69 million; over the same period, the price was up 5.52%.
Let’s talk about what’s behind this number.
Every open contract has both a long and a short position, so open interest alone can’t tell us whether the market is bullish or bearish. Across the entire market, the number of long positions always equals the number of short positions.
When the price is mostly flat but open interest rises noticeably, it suggests both sides are adding to their positions. This usually increases the likelihood of a larger move later on, though the direction is uncertain.
Any indicator is just a summary of past market activity, and the market can move in the opposite direction at any time.
You’re responsible for your own risk; this is just a discussion.
Let’s talk about what’s behind this number.
Every open contract has both a long and a short position, so open interest alone can’t tell us whether the market is bullish or bearish. Across the entire market, the number of long positions always equals the number of short positions.
When the price is mostly flat but open interest rises noticeably, it suggests both sides are adding to their positions. This usually increases the likelihood of a larger move later on, though the direction is uncertain.
Any indicator is just a summary of past market activity, and the market can move in the opposite direction at any time.
You’re responsible for your own risk; this is just a discussion.
