Glossary
What is open interest?
Also called: OI, open contracts
Updated Ninja Terminal team
Definition
Open interest is the total number of derivatives contracts that remain open and have not been closed or settled. Each contract has one long side and one short side, and it is counted once. Open interest rises when new positions open, falls when positions close, and stays the same when a position changes hands.
Open interest measures how much exposure is currently in the market. It is a stock measure, like an inventory of open positions. Volume measures flow over a period, so the two are different.
How does open interest change?
| Trade | Effect on open interest |
|---|---|
| A new buyer trades with a new seller | Up by the trade size |
| A trader who is closing trades with a new trader | No change |
| Two traders who are both closing trade with each other | Down by the trade size |
Example: trader A opens a long of 10 contracts against trader B, who opens a short of 10. Open interest is 10. Later A closes by selling to trader C, who opens a new long. Open interest stays at 10.
How do traders read it?
Traders compare open interest with price. Rising price with rising open interest can mean new money is entering the trend. Falling price with falling open interest can mean positions are closing out. A sharp drop can follow a wave of liquidations. It is a context signal, not a prediction, and it does not show how the positions are split between longs and shorts.
Exchanges can report it in contracts, in coins, or in USD value. Check the unit for each venue before comparing values.
Where does it appear in Ninja Terminal?
The mobile market stats sheet shows open interest next to the funding rate for the selected market.
Frequently asked questions
Is open interest the same as volume?
No. Volume counts how much traded in a period. Open interest counts how many contracts are still open at a point in time.
Does rising open interest mean the price will go up?
No. It shows that more contracts are open, not which side is right. Read it together with price and funding.