What is Open Interest (OI) in Crypto?
Open interest (OI) is the total number of outstanding derivative contracts — futures or options — that have not been settled. Unlike trading volume, OI measures how many contracts remain open in the market, making it a key gauge of market participation and liquidity.
How Open Interest Works
OI increases when new contracts are created (new buyer + new seller). OI decreases when contracts are closed (existing buyer sells to existing seller). OI stays flat when one existing position is transferred to a new trader.
OI + Price: The Four Scenarios
- Rising OI + Rising Price: Strong uptrend. New money is entering longs. Trend is healthy.
- Rising OI + Falling Price: Strong downtrend. New money is entering shorts. Bearish conviction.
- Falling OI + Rising Price: Weak uptrend. Shorts are covering (short squeeze), not new buying.
- Falling OI + Falling Price: Weak downtrend. Longs are capitulating. Trend may be ending.
Why OI Matters for Traders
High OI with extreme funding rates indicates an overcrowded trade — a classic setup for a liquidation cascade. Low OI after a long decline can indicate exhaustion and a potential bottom. Mirkaso scans OI anomalies across 150+ perpetual pairs and scores them by confluence with volume, CVD, and funding.
Explore real-time OI analysis on the Market Scanner.
OI vs Volume
Volume counts every trade. OI counts only open contracts. A high-volume day with flat OI means traders are flipping positions, not building new ones. A low-volume day with rising OI means positions are building quietly — often before a big move.