Technical Definition
Open Interest (OI)
Open Interest (OI) is the total number of active (unsettled) derivative contracts, such as futures or options, in the market.
By Crypto University Editorial
Funding RateLiquidationVolume
✦ Key Insight
OI helps traders understand market participation and strength behind a trend. Rising OI confirms trend strength, while falling OI may signal weakening momentum.
✕ Common Misconceptions
Common Mistakes
Looking at OI without price context
Assuming OI alone predicts direction
Ignoring sudden OI spikes (possible liquidations)
Detailed Explanation
How It Works
New positions → OI increases
Positions closed → OI decreases
Combined with price to interpret sentiment
FAQs
Q: Is high OI bullish?
Not necessarily—it depends on whether longs or shorts dominate.
In Practice
“BTC price rises + OI rises → strong bullish trend
BTC price rises + OI drops → weak rally”
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