Big options volume doesn’t always mean new positions. So how can you tell? 📊👀
@CVecchioFX explains why next-day open interest is key to identifying fresh trades, closing positions and potential market positioning.
#OptionsTrading# #OpenInterest# #TradingEducation#
Open interest on Hyperliquid's HYPE perp market jumped close to 18% following news that NYSE's parent company (ICE) is working to onshore perps through Trade[XYZ].
Open interest in North American Crude Grades futures has reached over 1M contracts as market participants access forward-curve liquidity across key U.S. crude oil grades to manage localized basis risk.
Open Interest event by @Ondo at Token2049 was top tier 🫡🇸🇬
- Meeting @Tradermayne finally
- @fundstrat my ETH savior
- Interview with Head of @OndoPerps
- Connected with institutions and crypto traders
Open interest is one of the most misunderstood numbers on a futures screen.
A market can trade millions of contracts…
and still have relatively little open interest.
Why?
Because volume and open interest measure different things.
Volume counts contracts traded during a period.
Open interest counts contracts that remain open after those trades.
Imagine two traders create a new futures position.
One buys.
One sells.
That creates 1 contract of open interest.
If they later close that position, open interest falls.
But if one trader exits while another new trader takes the other side, volume can increase while open interest may barely change.
That distinction matters.
Because traders sometimes look at rising volume and assume:
“More money is entering the market.”
That isn’t necessarily what the data says.
Volume tells you how much trading occurred.
Open interest tells you how many contracts remain outstanding.
Neither number, by itself, tells you whether price is going higher or lower.
But together, they can give you another view of what is happening beneath the price.
The chart shows where the market went.
Volume shows how much was traded.
Open interest shows how much exposure remains.
Three different pieces of information.
And confusing them can lead to a very different interpretation of the same market.
The lesson
Don’t just read price.
Understand what the numbers underneath the price actually measure.
HYPE open interest has been rebuilding since the 10/10 flush. This chart shows that recovery.
My thesis: we’re in a bull market and it’s buy the dip season for the next two years. Pullbacks and leverage flushes will test conviction. I’m betting the bigger trend continues. Keep building large positions to hold for over a year and you will be rewarded.
Build positions to hold. Trading day to day and week to week is how you get chopped up. HOLDING IS WINNING! bitcoin:native
$BTC open interest is up 4.2% from the 12 October low to 645,410 BTC, while price has stayed flat.
Funding has reached 7% to 9% annualised in peak sessions. Easing back towards 3% would put any rally on firmer footing.