$DOS 15-minute contract open interest increased by 8.28%; price rose by 6.48% over the same period.
Everyone, what is open interest? Here’s the short version👇
Contract open interest reflects combined leverage and hedging demand; some positions are simply used to hedge spot risk.
The higher open interest gets, the more contract trading affects prices. A sharp move could trigger a cascade of liquidations.
All data summarizes price movements that have already happened, and the market could just as easily move in the opposite direction.