$ONE 15-minute contract open interest rose 3.8%; the price increased 3.96% over the same period.
Everyone, what exactly does open interest tell us? Here’s the short version 👇
Open interest represents the total size of all contract positions: the higher it is, the more positions may be liquidated if prices swing sharply.
A new high in open interest is not inherently bullish or bearish. It simply means more positions are being taken and that the two sides disagree more.
Understanding this indicator is about being less intimidated by the numbers, not using it to predict price movements.
Everyone, what exactly does open interest tell us? Here’s the short version 👇
Open interest represents the total size of all contract positions: the higher it is, the more positions may be liquidated if prices swing sharply.
A new high in open interest is not inherently bullish or bearish. It simply means more positions are being taken and that the two sides disagree more.
Understanding this indicator is about being less intimidated by the numbers, not using it to predict price movements.
