Does a sharp rise in open interest mean money is flowing in?
Every open contract corresponds to one long and one short, so the total number of longs and shorts across the market is always equal.
Open interest is best viewed alongside price and funding rates. Trying to predict price movements based on changes in open interest alone can easily lead you astray.
Current market: $BTC Current price 74277.37 (24h -0.87%).
Have you run into any pitfalls in this area? Share them to help others avoid the same mistakes.
#BTC
Every open contract corresponds to one long and one short, so the total number of longs and shorts across the market is always equal.
Open interest is best viewed alongside price and funding rates. Trying to predict price movements based on changes in open interest alone can easily lead you astray.
Current market: $BTC Current price 74277.37 (24h -0.87%).
Have you run into any pitfalls in this area? Share them to help others avoid the same mistakes.
#BTC
