It counts all contracts, regardless of whether they are opening new positions or closing existing ones. By providing insights into market liquidity, open interest can help traders assess the ease with which they can enter or exit positions. Contracts with high open interest are typically more liquid, with tighter bid-ask spreads. This liquidity can make […]
Kategorija: Cryptocurrency exchange
Open interest can provide embedded systems tutorial indications of the strength or weakness of a market trend. If prices and open interest are increasing, the current trend is likely strong. However, if prices are rising and open interest is falling, it could be a signal that the trend is weakening and a price reversal might […]