What is Open interest?
The total value of futures positions currently open, a measure of how much leverage is in play.
Open interest rises when new positions are opened and falls when they are closed. Rising price with rising interest suggests new money; falling interest suggests positions being unwound.
It is a positioning gauge, not a direction: record interest can precede a squeeze in either direction.
Related terms
- Perpetual futuresTrading
A derivative that tracks an asset with no expiry, held open by periodic funding payments.
- Funding rateTrading
The periodic payment between long and short perpetual traders that keeps the contract near spot.
- LiquidationTrading
Forced closing of a leveraged position when its margin falls below the maintenance level.