Glossary
Open interest
The total number of futures or options contracts that are open and not yet closed or settled.
Open interest counts contracts still outstanding. It rises when a new buyer and a new seller open a contract between them and falls when both sides close. When an existing holder simply passes a position to a new trader, open interest stays the same.
Every contract has a long side and a short side, so open interest alone does not show which side is larger. It shows how much money is committed to the market.
Traders often read it together with price: rising price with rising open interest suggests new positions are being added, while rising price with falling open interest suggests shorts are closing. In crypto it is usually quoted in dollars or in coins.
Related terms
For education only, not financial advice. Crypto assets and stocks are volatile, and leveraged positions can lose more than the money you put in.