$ONE The 15-minute contract open interest rose 5.23%; the price rose 1.79% over the same period.
Let’s use this figure to talk about open interest.
Open interest is not money flow: an increase only means that the number of open contract positions has grown. It doesn’t tell you where the money came from or whether positions are bullish or bearish.
The higher the open interest, the greater the impact contract positions can have on the price. A sudden rise or fall can trigger a cascade of liquidations.
Don’t place orders during the most volatile minutes. Wait for the price move to play out before deciding.
I can be wrong too, so don’t take this as advice.
Let’s use this figure to talk about open interest.
Open interest is not money flow: an increase only means that the number of open contract positions has grown. It doesn’t tell you where the money came from or whether positions are bullish or bearish.
The higher the open interest, the greater the impact contract positions can have on the price. A sudden rise or fall can trigger a cascade of liquidations.
Don’t place orders during the most volatile minutes. Wait for the price move to play out before deciding.
I can be wrong too, so don’t take this as advice.