Open interest (OI) counts how many futures or options contracts are live in the market right now — every open long is matched by an open short, so OI measures the total capital committed, not the trading volume. Rising OI means new money is entering positions; falling OI means positions are being closed.
Combined with price, OI tells a story: price up with rising OI suggests a trend backed by fresh conviction, while price up with falling OI suggests short covering that may not last. Sharp OI drops often mark liquidations or capitulation.
Example
Price breaks out and open interest jumps 20% the same day — new longs are funding the move, not just shorts covering.
How Noon Barbari uses Open Interest
Every concept here is implemented in the platform. Open the relevant docs or tool to see it in action.
See perps data in noonbarbari →Related terms
- General
Funding Rate
The periodic payment between long and short holders of a perpetual futures contract.
- General
Long/Short Ratio
The proportion of traders (or position value) that is long versus short on an asset.
- Indicators
Volume moving average
A moving average of bar volume, used to detect above-average participation.