Open interest(Open interest)
The total number of contracts left open in the futures/perpetual market. Read together with volume, it shows the participation behind a move.
If open interest rises while price rises, new longs are entering (a healthy trend); if open interest falls while price rises, shorts are closing (short covering, more fragile).
In crypto, a sudden jump in open interest plus high funding means a leveraged crowd and the risk of a liquidation wave.
Related terms
Where it appears in the guides
Guides whose text uses this term; most frequent first.