$BERA 15-minute contract open interest rose 7.28%; the price rose 1.96% over the same period.
Let’s use this data to talk about open interest.
Open interest reflects the size of outstanding contract positions: the larger it is, the more positions could be liquidated if the price moves sharply.
Rising prices with falling open interest are often seen as being driven by short covering; falling prices with falling open interest are often seen as longs exiting at a loss. These are only assumptions, not conclusions.
The indicator may be inaccurate, but stop-losses are still essential: thinking in advance about what to do if you’re wrong is more important than predicting correctly.
Let’s use this data to talk about open interest.
Open interest reflects the size of outstanding contract positions: the larger it is, the more positions could be liquidated if the price moves sharply.
Rising prices with falling open interest are often seen as being driven by short covering; falling prices with falling open interest are often seen as longs exiting at a loss. These are only assumptions, not conclusions.
The indicator may be inaccurate, but stop-losses are still essential: thinking in advance about what to do if you’re wrong is more important than predicting correctly.