Open Interest

The total value of derivative contracts currently open.

Metrics & Analysis Also called OI

Open interest counts positions that have been entered but not yet closed. Rising OI alongside rising price suggests new money backing the move; rising price on falling OI suggests short covering.

A rapid OI build-up marks a market carrying a lot of leverage, which raises the odds of a cascade in either direction.

Related terms

Trading & Markets

Funding Rate

A periodic payment between long and short traders that keeps perpetuals near spot.

Trading & Markets

Futures

Contracts to trade an asset at a future price, often with no expiry in crypto.

Trading & Markets

Liquidation

Forced closure of a leveraged position when margin no longer covers losses.

Metrics & Analysis

Trading Volume

The total value traded over a set period, usually 24 hours.

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