Open interest in the crypto futures market represents the total number of outstanding contracts, providing insights into potential trend movements.
Open interest is a key concept in financial markets, especially when trading futures and options. It represents the total number of active contracts for a specific financial instrument that exists at any given moment.
A futures contract means that two parties have agreed to buy or sell the underlying asset at a specified price on or before a predetermined future date. Open interest represents the total number of contracts that have not been offset or fulfilled by delivery, as opposed to trading volume, which measures the total number of contracts exchanged within a given period of time.