$MAGMA Open interest surged 12.36% in 15 minutes
Don't rush—understand open interest before you act.
Open interest reflects the size of positions in futures contracts: the higher the open interest, the more positions may be liquidated when prices fluctuate sharply.
The higher the open interest, the more futures positions can drive prices. A sudden surge or drop may trigger a cascade of liquidations.
Calculating your order size backward from where you place your stop-loss is far more reliable than choosing a position size by gut feel.
Don't rush—understand open interest before you act.
Open interest reflects the size of positions in futures contracts: the higher the open interest, the more positions may be liquidated when prices fluctuate sharply.
The higher the open interest, the more futures positions can drive prices. A sudden surge or drop may trigger a cascade of liquidations.
Calculating your order size backward from where you place your stop-loss is far more reliable than choosing a position size by gut feel.