Open Interest
Total number of open futures and perp positions in the market — measures engagement.
Open interest (OI) is the total number of active (open) futures or perpetual contracts not yet closed or settled.
Difference from volume:
•Volume: how many contracts changed hands today
•OI: how many contracts are currently open (cumulative)
How to read OI:
•OI rise + price rise = new money entering, trend confirmed (bullish)
•OI fall + price fall = positions closing (potential bottom)
•OI rise + price fall = new shorts opening (bearish)
•OI fall + price rise = shorts covering (short squeeze possible)
OI as manipulation signal:
•Extremely high OI → potential "flush" — market makers liquidate everyone
•Track OI by exchange: Coinglass.com, Glassnode
Funding rate + OI combination:
•High OI + high funding = too many longs → reversal signal