$UAI 15-minute contract open interest increased by 21.53%, with an open interest value of approximately $5.06 million; over the same period, the price fell 37.73%.
Hey everyone, what is open interest? Here’s the short version 👇
An increase in open interest means new positions are entering the market; a decrease means positions are exiting, either through voluntary closing or forced liquidation.
Rising prices with increasing open interest are often seen as a sign of new long positions entering actively, while falling prices with increasing open interest are often interpreted as a sign of new short positions entering actively.
Understanding an indicator helps you avoid being misled by the numbers—not predict tops and bottoms with it.
Hey everyone, what is open interest? Here’s the short version 👇
An increase in open interest means new positions are entering the market; a decrease means positions are exiting, either through voluntary closing or forced liquidation.
Rising prices with increasing open interest are often seen as a sign of new long positions entering actively, while falling prices with increasing open interest are often interpreted as a sign of new short positions entering actively.
Understanding an indicator helps you avoid being misled by the numbers—not predict tops and bottoms with it.
