Continue reading...Ever wonder what makes a winning trader consistent? In my opinion that consistency is due to the trader having his own "edge" over other traders. This "edge" is what each trader must find for himself. Often traders focus on their results so much that they forget that every other trader in the world is doing the same thing: Trying to profit from price action alone. Trading this way can make you money, but what if you had an added edge to your strategy? In Commodity Futures, we have something called Open Interest that just may provide that advantage.
What is This Open Interest?
Open Interest is the total number of outstanding contracts that are held by market participants at the end of the day.
Contracts that are held overnight have much more conviction behind them. They assume more risk by holding these positions.
Another way of looking at Open Interest is the total number of Futures contracts that have not yet been exercised (offset), contract expired or fulfilled by...
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