What is Open Interest?
Open Interestâ
Open interest represents the total value of all outstanding perpetual contracts that have not been settled. It provides insight into market activity and liquidity.
How to Read Itâ
Higher open interest usually means more active participation in a market. Lower open interest usually means fewer outstanding positions.
Open interest does not show whether traders are net long or net short by itself. It should be read together with price movement, volume, and your own risk limits.
