Demystifying the Futures Lingo: Understanding Open Interest and Position Build-Up
Are you often confused by the jargons used in the futures market? Do you struggle to understand the impact of open interest on the potential prices of underlying assets? If so, this video is for you!
In this video, we delve into the core concept of open interest and explore the four common futures market positions: long build-up, short build-up, long unwinding, and short covering. By understanding these positions and their potential impact, you can gain valuable insights into the expected future price movements of stocks, indices, and commodities.
We also explain how open interest data can be used as a powerful tool for retail traders to set themselves up for the trading day ahead. By following the footsteps of big players or institutions and building their trading position in the direction of the existing open interest position in the markets, traders can make more informed trading decisions.
So, if you want to improve your understanding of futures lingo and become a more informed trader, make sure to watch this video till the very end! And don't forget to download the Hedged app to save 95% of the time you spend looking for trades and receive free trades all year round.
