$ qubo learn derivatives/03

Open interest and long/short ratio

Open interest (OI) is the total value of perp or futures positions still open. Every contract has a long and a short side, so OI counts positions, not buyers versus sellers.

OI is useful together with price. Price up with OI up suggests new positions opening in the direction of the move. Price up with OI down suggests positions closing, for example shorts covering.

The long/short ratio compares the number of accounts holding longs with those holding shorts on a venue. It describes accounts, not money: a few large shorts can face many small longs.

Rising OI means more leverage in the system. That makes later moves potentially sharper if positions are forced to close.

// rule to remember

// your turn

In Perps Hyperflow, find an asset whose OI rose more than 10% in 24 hours and check how its price moved.

Educational content only. Not investment advice. Past data does not predict future results. Risk disclosure