source avatarAma Rae

Share

More open interest does not mean more bulls. Open interest tells me how much derivatives positioning is open. It does not tell me whether traders are bullish or bearish, because every long has a short on the other side. So when OI rises, the first conclusion should be: more positioning is building. Not necessarily that more bulls are entering. For example: Price rises. OI rises. That tells me new exposure is entering during the move. But I still need context. Are aggressive longs chasing price? Are shorts opening against the move? Is spot demand supporting the move? What are funding rates and liquidations showing? That distinction matters. OI measures participation and exposure, not direction by itself. @tryquantio is being built to help explore derivatives, positioning and market context across crypto, stocks and commodities conversationally. I would rather ask: “What kind of positioning is building behind this move?” Than simply: “Is OI going up?” https://t.co/Sxw0VOHcs7 https://t.co/rJDKmjdiTF #QuantAIPioneers

No.0 picture
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.