Updated 2026-07-25
Open interest is the total value or number of derivatives contracts that are currently open and not yet closed or settled. Unlike volume, it does not count activity. It counts positions. Two traders churning the same contract back and forth generate volume without changing open interest; a new buyer meeting a new seller raises it.
Read as a positioning gauge, it tells you how much capital is committed. Rising open interest alongside a rising price means new longs are funding the move, which also means new liquidation prices are being created below. Falling open interest during a move means positions are being closed rather than opened, which is a different kind of move entirely. Open interest is also the primary observable input to any liquidation heatmap, because it is the honest proxy for how much leverage is out there. Full guide: open interest explained.