$PLAY 1-hour contract open interest rose 15.53%, with an open interest value of about $3.22 million; the price rose 24.08% over the same period.
To see whether money is flowing into or out of contracts, start by looking at open interestโbut make sure you understand what this figure means.
Every open contract has both a long and a short position, so open interest itself has no directional bias. The total number of long and short positions in the market is always equal.
If the price is mostly flat while open interest rises noticeably, it means both longs and shorts are increasing their positions. A significant move is generally more likely to follow, but the direction is uncertain.
Indicators can be inaccurate, so donโt skip your stop-loss: deciding in advance what to do if youโre wrong matters more than guessing correctly.
Just sharing some thoughts; this is not advice.
To see whether money is flowing into or out of contracts, start by looking at open interestโbut make sure you understand what this figure means.
Every open contract has both a long and a short position, so open interest itself has no directional bias. The total number of long and short positions in the market is always equal.
If the price is mostly flat while open interest rises noticeably, it means both longs and shorts are increasing their positions. A significant move is generally more likely to follow, but the direction is uncertain.
Indicators can be inaccurate, so donโt skip your stop-loss: deciding in advance what to do if youโre wrong matters more than guessing correctly.
Just sharing some thoughts; this is not advice.
