Open Interest

Open interest is the total value or number of derivative contracts, such as perpetual futures or options, that are currently open and not yet closed or settled. Unlike trading volume, which counts activity over a period and resets, open interest is a running snapshot of how much exposure remains in the market. It rises when new positions are created and falls when positions are closed or liquidated. Analysts read it alongside price and funding: growing open interest with rising price suggests fresh positioning, while a sudden drop often marks a wave of liquidations or unwinding. Open interest measures participation, not direction, and is not a price signal on its own.