$ONE Open interest in 5-minute contracts increased by 4.04%, with an open interest value of approximately $12 million; the price rose 3.67% over the same period.
Let’s use this figure to talk about open interest.
Open interest (OI) is the total number of contracts in the market that haven’t been closed. It measures the number of open positions, not trading volume.
When the price is mostly flat while open interest rises sharply, it suggests that both longs and shorts are placing bets. The chances of a larger move afterward are often higher, but the direction is uncertain.
Understanding this metric is meant to keep you from being spooked by the numbers, not to use it to predict tops or bottoms.
#ONE
Let’s use this figure to talk about open interest.
Open interest (OI) is the total number of contracts in the market that haven’t been closed. It measures the number of open positions, not trading volume.
When the price is mostly flat while open interest rises sharply, it suggests that both longs and shorts are placing bets. The chances of a larger move afterward are often higher, but the direction is uncertain.
Understanding this metric is meant to keep you from being spooked by the numbers, not to use it to predict tops or bottoms.
#ONE