Trading · 70 / 86
Open interest, volume, and smart money
Open interest is how many derivative contracts are still open. Volume is how much traded. Smart money is a label someone put on a wallet. None of these is a person who owes you a profit.
The numbers
Rising open interest means new positions, not automatically a direction. Volume can be washed. A large trade is large. It is not wise.
Wallet labels
A tracker calls an address a fund or a whale. The label can be wrong, late, or an advertisement for the tracker. Following it is copy trading with extra steps.
Use the numbers to see crowding and activity. Do not use them as orders.
Check yourself
Should you trade because a labelled wallet did?
No. The label is not a reason, and you do not have their entry.
After this you can define open interest without turning it into a buy signal.