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  1. Home
  2. /Glossary
  3. /Open Interest
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Open Interest

The total number of outstanding derivative contracts (like futures or options) that haven't been settled.

Definition

The total number of outstanding derivative contracts (like futures or options) that haven't been settled. Rising open interest with rising price means money is flowing into the market and the trend is strong. Falling open interest suggests the trend is weakening as traders close positions.

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Related Terms

Futures

Contracts to buy or sell an asset at a specific price on a future date.

Perpetual Swap

A derivative contract similar to futures but with no expiration date.

Options

Contracts giving the right, but not obligation, to buy (call) or sell (put) an asset at a set price before expiration.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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