What is the process for calculating open interest in the context of digital currencies?

1 answers

• Singer HartJun 28, 2024 · a year ago
  Calculating open interest in the context of digital currencies is a process that involves collecting data on the total number of open buy orders and sell orders for a specific cryptocurrency. This data can be obtained from cryptocurrency exchanges or trading platforms. Subtracting the number of open sell orders from the number of open buy orders will give you the net open interest. Open interest is an important metric in the cryptocurrency market as it indicates the level of market participation and can be used to assess the overall sentiment towards a particular cryptocurrency. It can also help traders identify potential support and resistance levels. BYDFi, a leading cryptocurrency exchange, provides real-time open interest data for various digital currencies on its platform, making it easier for traders to monitor and analyze market trends.
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