What Is Open Interest?
Open interest (OI) is the total number of outstanding derivative contracts, such as perpetual futures, that have not been settled. Rising open interest means new money entering positions; falling open interest means positions closing.
Why open interest matters
Price can move on thin conviction or on real positioning. Open interest tells you which. A rally with rising OI is backed by new positions and tends to have follow-through. A rally with falling OI is mostly shorts covering, which often fades. Sudden OI spikes also flag that leverage is building up, raising the odds of a liquidation cascade.
How traders use it
Traders combine OI with price: price up plus OI up reads as trend confirmation, price up plus OI down reads as short covering, price down plus OI up reads as aggressive shorting. OI divergence, where price makes a new high but OI does not, is a classic exhaustion warning.
Zash alerts you when open interest surges, drops or diverges from price, in real time on Telegram.
Open Interest Alerts