Higher or Loser Open Interest: Which is better?
Whether higher or lower open interest is better depends on the trader’s goals and market conditions. Higher open interestt often indicates greater liquidity, market validation, and tighter spreads, making it preferable for many traders. However, lower open interest can offer flexibility and potential for significant price movements, albeit with wider spreads and less market validation. Traders should consider their risk tolerance and trading strategy when deciding which open interest level suits their needs best.