Open Interest (OI) is the total value of all open futures positions on a coin or the entire market. One of the most important indicators for gauging trader interest and potential volatility.
What High OI Means
High OI means lots of capital locked in futures positions — traders expect a big move. Higher OI = higher potential volatility, because liquidations will have a stronger effect.
When OI rises alongside price, it signals a strong trend. When OI rises while price falls, shorts are opening positions.
OI vs Volume
Volume shows how many contracts changed hands. OI shows how many contracts are still open. Both are important, but OI gives a better picture of capital engaged in the market.
Disclaimer: This is not financial advice. Always do your own research.