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EnsoTradeLearn › Open interest

What is Open interest?

Open interest is the total value of derivative contracts currently open and not yet closed. Rising open interest alongside a price move means new money is entering the trade; falling open interest means positions are being closed.

How to read it

Price up + OI up = new longs, real demand. Price up + OI down = shorts covering, weaker. Price down + OI up = new shorts, pressure. Price down + OI down = long capitulation.

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FAQ

What is a healthy OI trend?
OI rising with price and with balanced funding signals a move backed by fresh positioning rather than a squeeze.

Related

Funding rateOrder flowDealer gamma (GEX)LiquidationShort squeezeFutures basisPerpetual futuresLong/short ratio

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