Open Interest
Total number of open contracts in futures markets.
Beginner-friendly explanation
Open Interest shows the total number of active contracts (like in futures trading). It tells how many traders have opened but not yet closed a position.
Example:
The Bitcoin futures market has an Open Interest of 500,000 contracts.
Intermediate-level insight
High Open Interest indicates more activity and liquidity. Changes in OI help predict moves: rising OI + rising prices = strong trend; falling OI = position closures.
Example:
Ethereum’s price rises and Open Interest grows: it confirms a strong bullish trend.
Advanced perspective
Combined analysis of Open Interest, funding rates, and net long/short positions gives a precise view of speculative pressure. Large divergences between OI and price action may signal bull or bear traps.
Example:
An analyst spots rising OI with stagnant price: a potential squeeze setup.
NFT DEFI Web3
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