if you’re new to leverage trading, you should learn this: open interest (OI)

OI tells you how many positions are currently open:

it shows you how many people are still in the arena. but! not who’s winning, just how many people are still fighting.

here’s how to read it:

price up + OI up = new longs entering, the trend has some validation/bidders

price up + OI down = shorts are closing, could be a squeeze

price down + OI up = new shorts are entering and the trend might continue

price down + OI down = traders closing out of positions which means the move may be fizzling out

so if you’re trading perps, know that it’s not just about what price is doing, it’s also about why.

OI helps you see if people are committing to the trade or running from it, it is not a kingmaker datapoint, but it certainly doesn’t hurt to pay attention to it

learn to read this and you stop trading blind.