Open Interest is defined as the number of open positions (including both long and short positions) currently on a derivative exchange's trading pairs. As Open Interest (OI) increases, it indicates more liquidity, volatility, and attention are coming into the derivative market. The increasing trend in OI could support the current ongoing price trend. As Open Interest (OI) decreases, it indicates investors are closing futures positions. In turn, this might trigger the possibility of long/short-squeeze caused by sudden price movement or vice versa. Learn more
