$BIRB 1-hour contract open interest increased by 13.26%; the price rose 13.46% over the same period.
Let’s use this figure to talk about open interest.
Every open contract has both a long and a short position behind it, so open interest itself cannot tell us whether the market is net long or net short. The total number of long positions and short positions in the market is always the same.
Open interest often drops sharply after a sudden rally or sell-off. This indicates that some leverage has been flushed out, and short-term volatility may sometimes cool down as well.
Don’t change your original approach based on a single indicator, and never use borrowed money to test what a reading means.
Let’s use this figure to talk about open interest.
Every open contract has both a long and a short position behind it, so open interest itself cannot tell us whether the market is net long or net short. The total number of long positions and short positions in the market is always the same.
Open interest often drops sharply after a sudden rally or sell-off. This indicates that some leverage has been flushed out, and short-term volatility may sometimes cool down as well.
Don’t change your original approach based on a single indicator, and never use borrowed money to test what a reading means.