Open Interest Neutrality describes a state in derivatives markets where the total value of open long positions is approximately equivalent to the total value of open short positions. This condition indicates a balanced market sentiment. It suggests an equilibrium between bullish and bearish speculation.
Context
Open interest neutrality is a market indicator frequently discussed in crypto news, signifying a relatively balanced speculative environment in futures and options markets. Deviations from this neutrality can signal the potential for significant price movements as one side of the market gains dominance. This makes it a key metric for understanding market positioning.
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