Trading · 4 min
Volume counts contracts traded in a period; open interest counts contracts still open. On BRVX perpetuals, which never expire, open interest falls only when positions close. Volume measures activity and resets every session, while open interest measures the money committed at a moment.
How each one changes
Every trade adds to volume. Open interest rises only when a new buyer meets a new seller, falls when two existing holders close against each other, and stays flat when a position simply changes hands.
Reading them together
| Price | Open interest | Common reading |
|---|---|---|
| up | up | new longs entering, trend backed by fresh money |
| up | down | shorts closing, a squeeze more than new demand |
| down | up | new shorts entering |
| down | down | longs closing or being liquidated |
Limits of the signal
These readings are rules of thumb, not predictions. High volume with flat open interest can be day traders churning the same positions, and a single large trader can move either figure.
On perpetual markets, pair open interest with the funding rate: when one side crowds in, funding tends to move with it.
Updated
Questions about this topic
Can open interest be higher than volume?
Yes. Positions opened on earlier days stay in open interest, while volume counts only the current period.
Does high open interest mean the price will rise?
No. It shows how much is committed, not in which direction.
Try it in the BRVX app
Open appLeveraged trading is high risk: you can lose your whole margin. Not available to US persons.