$INIT ｜15-minute open interest +2.88%｜Price +10.39%
Before looking at fund flows, first understand open interest.
The value of open interest equals the number of coins held × price, so it increases when the price rises. Comparing the number of coins gives a clearer picture of whether new positions have actually been opened.
The larger the open interest, the more noticeably futures market funds can affect prices; a sharp move can trigger a chain of liquidations.
Calculating position size based on the stop-loss distance is far more reliable than placing orders by gut feel.
Before looking at fund flows, first understand open interest.
The value of open interest equals the number of coins held × price, so it increases when the price rises. Comparing the number of coins gives a clearer picture of whether new positions have actually been opened.
The larger the open interest, the more noticeably futures market funds can affect prices; a sharp move can trigger a chain of liquidations.
Calculating position size based on the stop-loss distance is far more reliable than placing orders by gut feel.