๐Ÿง  Crypto Express Glossary: What is "Open Interest" (Open Interest)? ๐Ÿ“‰๐Ÿ“ˆ

If you trade on the Binance Futures market or follow technical analysts, youโ€™ve probably read the phrase: "Open Interest is rising".

But what does it really mean, and how can it help you not lose money?

โ“ In simple terms:
Open Interest (OI) is the total number of futures contracts (both buy/Long and sell/Short) that remain open and active in the market. It does not measure past trading volume, but how many positions are still โ€œaliveโ€ at this exact moment.

๐Ÿ”ฅ How is it used to read the market?
โ€ข Price rises + Open Interest rises: This means new money is coming in to support the trend. The move is strong and healthy.
โ€ข Price rises + Open Interest falls: The rally is running out of fuel. Traders are closing positions and the price could correct soon.

Looking only at price is like seeing a car without checking the fuel gauge. Open Interest tells you how much โ€œgasโ€ the move still has.

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