Open Interest
Total number of outstanding derivative contracts not yet settled.
Open interest (OI) counts every futures or options contract that is currently active. When a new buyer and a new seller create a contract, OI increases by one. When an existing holder closes against another existing holder, OI decreases by one. OI stays flat when one new and one existing trader transact.
Rising OI alongside rising prices suggests new money entering long positions, confirming a bullish trend. Rising OI with falling prices indicates aggressive new shorts. Falling OI during a move suggests positions are being closed rather than new conviction entering.
Extreme open interest relative to market cap can signal over-leveraged conditions ripe for a cascade of liquidations. These OI overheating signals are valuable for risk management.
Open interest reveals whether capital is entering or leaving the derivatives market and whether trends are driven by new conviction or mere position unwinding.
How CryptoRadar24 tracks it
CryptoRadar24 tracks open interest across major exchanges and plots it alongside price to highlight divergences between OI trends and price action.
Related terms
FAQ
Is open interest the same as volume?
No. Volume counts all contracts traded in a period. Open interest counts only those still active. A contract opened and closed in the same day adds to volume but not to end-of-day OI.
What does falling OI during a rally mean?
It suggests shorts are closing (getting squeezed) rather than new longs entering. The rally may be less sustainable without fresh capital.
Why does high OI matter?
Extremely high OI relative to market cap signals heavy leverage, increasing the probability of cascading liquidations if the price moves sharply.
Can OI predict liquidations?
High OI concentrations at specific price levels can indicate where liquidation clusters exist, helping anticipate violent price moves.