What is Open Interest? Understanding Market Significance and Analysis Techniques of Unsettled Contracts

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Open Interest (OI), commonly referred to as unsettled contracts or持仓, represents the total number of outstanding derivative contracts that have not yet been settled. Simply put, it indicates how many筹码 are on the table.

Whether long or short, any position that remains open is counted in Open Interest.

Thus, Open Interest data alone doesn't distinguish market direction. You must analyze it alongside price movements to identify fund flows.

Differences Between Open Interest and Trading Volume

Many confuse Open Interest with trading volume:

MetricOpen InterestTrading Volume
DefinitionTotal unsettled contractsDaily transaction count
Value Change Basis+1 for opening, -1 for closing+1 per trade
Analytical UseTracks capital inflow/trend continuityMeasures market volatility

How to Interpret Open Interest? Is Higher Data Always Better?

Combining Open Interest with long/short ratios clarifies market sentiment and主力动向:

Key insights when analyzing OI and long/short ratios:

Rising Open Interest

Indicates increasing持仓 and new capital entering the market.
Example: OI上升 + declining long/short ratio = New funds entering while retail shorts increase.
If prices rise despite this, a short squeeze may occur.

Declining Open Interest

Signals持仓 reduction and capital exiting.
Example: OI下降 + falling long/short ratio = Long positions taking profits.
Often leads to weak momentum and uncertain trends.

Where to Find Open Interest Data?

Platforms like Coinglass display OI across exchanges. Navigate via:

【Indicators】→ Enter "持仓"→【Open Interest】

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FAQs

1. Does high Open Interest always mean bullish sentiment?

No—OI reflects total open positions without direction. Analyze with price action for context.

2. Why does Open Interest matter for traders?

It helps gauge market liquidity, trend strength, and potential reversals when paired with other metrics.

3. How often should I check Open Interest data?

Monitor daily for active trading, especially around key support/resistance levels.

4. Can Open Interest predict price crashes?

Sudden OI drops may signal weakening trends, but always confirm with volume and price patterns.

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Key Takeaways

Disclaimer: This content is for educational purposes only. Cryptocurrency trading carries high risk—invest responsibly.


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