🔍 $AKE 15-minute contract open interest rose 1.6%; the price rose 2.28% over the same period.
[Term explained] What is open interest?
Every new position always involves someone going long and someone else going short, so “a sharp rise in open interest means the market is bullish” is a common misconception.
A high level of open interest is neither bullish nor bearish in itself. It simply means more money is being wagered and the disagreement between the two sides is more intense.
The point of understanding an indicator is to be less intimidated by the numbers, not to use it to predict tops and bottoms.
[Term explained] What is open interest?
Every new position always involves someone going long and someone else going short, so “a sharp rise in open interest means the market is bullish” is a common misconception.
A high level of open interest is neither bullish nor bearish in itself. It simply means more money is being wagered and the disagreement between the two sides is more intense.
The point of understanding an indicator is to be less intimidated by the numbers, not to use it to predict tops and bottoms.