๐ง Crypto Express Glossary: What is "Open Interest" (Open Interest)? ๐๐
If you trade on the Binance Futures market or follow technical analysts, youโve 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 โaliveโ at this exact moment.
๐ฅ How is it used to read the market?
โข Price rises + Open Interest rises: This means new money is coming in to support the trend. The move is strong and healthy.
โข 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 โgasโ the move still has.
๐ Like this post and save it if it helped you for your next trading session!
#CryptoEducaciรณn #TradingTips #Futuros
If you trade on the Binance Futures market or follow technical analysts, youโve 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 โaliveโ at this exact moment.
๐ฅ How is it used to read the market?
โข Price rises + Open Interest rises: This means new money is coming in to support the trend. The move is strong and healthy.
โข 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 โgasโ the move still has.
๐ Like this post and save it if it helped you for your next trading session!
#CryptoEducaciรณn #TradingTips #Futuros