--- title: "What Is Open Interest in Crypto Derivatives?" term: "Open interest" type: glossary_term canonical: https://www.moonwire.org/insights/glossary/open-interest.html --- # What Is Open Interest in Crypto Derivatives? > The total number (or value) of derivative contracts — futures, perpetuals or options — that are open and not yet closed or settled. It rises when new positions open and falls when they close. **Open interest** is the total amount of derivative contracts outstanding in a market at a moment in time: every futures, perpetual or options position that has been opened and not yet closed, expired or settled. In crypto it is usually quoted in dollars or in units of the underlying coin. ## How it changes Every contract has a buyer and a seller, so open interest counts contracts, not participants on one side. - When a new buyer and a new seller open a contract together, open interest **rises**. - When an existing long and an existing short both close, it **falls**. - When one trader hands an existing position to another, it is **unchanged** — the contract simply changed hands. That is why open interest and trading volume answer different questions. Volume counts how much traded; open interest counts how much exposure remains on the books afterwards. ## What it is used to describe - **Leverage in the system.** Rising open interest means more positions — and usually more borrowed exposure — riding on price. A large build-up can make a market more prone to forced closures if price moves sharply. - **Participation behind a move.** A price rise accompanied by rising open interest describes new positions being opened into the move; a rise with falling open interest describes shorts closing out. - **Unwinds.** A sudden large drop in open interest alongside a sharp price move is the typical footprint of liquidations, where exchanges close under-margined positions automatically. None of these patterns says which way price goes next. Open interest describes positioning, and positioning can be wrong in either direction. ## Related terms In crypto, a large share of open interest sits in [perpetual futures](https://www.moonwire.org/insights/glossary/perpetual-futures.md), whose [funding rate](https://www.moonwire.org/insights/glossary/funding-rate.md) shows which side is paying to hold its position. Options open interest clusters around specific expiry dates, which is why large expiries are reported as market events. ## In MoonWire analysis Our market pulses and prognosis articles report open interest as reported by the exchanges and data desks our sources cite, described as positioning context rather than as a directional signal. ## Further reading - [Wikipedia: Open interest](https://en.wikipedia.org/wiki/Open_interest) - [Investopedia: Open Interest](https://www.investopedia.com/terms/o/openinterest.asp) ## Where this appears in MoonWire analysis - [Tokenized Stocks vs Tokenized Equities vs RWAs: What Actually Shipped in 2026](https://www.moonwire.org/insights/tokenized-stocks-vs-tokenized-equities-vs-rwas.md) — Sep 12, 2026 - [Bitcoin loses its seven-day floor while open interest expands 2.12% — positioning built into the decline, not unwound](https://www.moonwire.org/insights/btc-breakout-read-2026-09-10.md) — Sep 11, 2026 - [SOL separates from BTC and ETH: a trending-down regime print with open interest still building](https://www.moonwire.org/insights/sol-breakout-read-2026-09-10.md) — Sep 11, 2026 - [The Bitcoin Calls Named a Season. The Bitcoin Data Asked a Question.](https://www.moonwire.org/insights/market-pulse-2026-09-01.md) — Sep 11, 2026 - [Solana separates from the majors: three directional days on expanding open interest, with funding still flat](https://www.moonwire.org/insights/sol-breakout-read-2026-08-08.md) — Aug 8, 2026 - [The Bid Came Back in Bitcoin's Options Book, Not Its Futures Book](https://www.moonwire.org/insights/market-pulse-2026-08-08.md) — Aug 8, 2026 - [BTC Firms 1.85% in Two Days While Open Interest Sits Flat and Perps Trade at a Discount](https://www.moonwire.org/insights/btc-breakout-read-2026-08-03.md) — Aug 5, 2026 - [Market Pulse - July 31: Bitcoin's Trustless Device Failed at Making a Secret. An Insured Custodian Named That Night Came With a Bank Charter.](https://www.moonwire.org/insights/market-pulse-2026-07-31.md) — Aug 3, 2026 - [Market Pulse - July 29: Cash Has Out-Earned Crypto's Carry Trade for 157 Days. The Fed Just Left the Cash Leg Where It Was.](https://www.moonwire.org/insights/market-pulse-2026-07-29.md) — Jul 29, 2026 - [Market Pulse - July 24: The Bill Lost Twenty Points. The Rulebook Moved Anyway.](https://www.moonwire.org/insights/market-pulse-2026-07-24.md) — Jul 26, 2026 - [Sector Rotation - Week of July 7: The Loudest Sector in Crypto Wasn't Crypto - Attention Rotated Toward AI and the Real World](https://www.moonwire.org/insights/sector-rotation-2026-07-14.md) — Jul 14, 2026 - [Breaking Brief — July 13: An Exchange Died of Compliance, and Washington Repriced the Cost of Carrying Crypto](https://www.moonwire.org/insights/compliance-becomes-cost-of-carrying-crypto.md) — Jul 14, 2026 --- *MoonWire surfaces and summarizes public crypto news.* **General information only — not financial advice.** MoonWire Ltd. is not licensed by ASIC and holds no AFSL. 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