Glossary

Open interest

Open interest is the total number or value of derivative contracts that are open and not yet settled or closed.

Open interest counts the futures or options contracts that are still open. Each contract has one long side and one short side. The count includes each contract once. It can be shown in contracts, in coins or in dollars.

Open interest rises when new contracts open and falls when existing contracts close. A trade between two traders who both open new positions adds to it. A trade between two traders who both close positions subtracts from it. A trade where one side opens and the other closes leaves it unchanged. Trading volume does not give this information.

A rising open interest shows that more leveraged exposure exists. It does not show whether the new positions are long or short. Dollar-denominated open interest can also rise only because the price rose. Read the coin-denominated figure with it to separate the two effects.