Open interest measures the flow of money into futures, options, or swap markets. More importantly, open interest data can be used to gauge market activity, liquidity, and interest in the overall market or for a particular instrument to predict price movements and inform trading and investing decisions.
Current derivatives and trading platforms/exchanges already provide users access to open interest data, however, these solutions aren’t built for enterprise-level use cases. But with crypto options data providers like Amberdata, users gain access to comprehensive open interest data for all major exchanges, including Binance.
Amberdata offers the following crypto options open interest (OI) datasets and endpoints:
Together, these datasets can enhance trading strategies by providing broader insights into market activity, overall stakeholder interests, liquidity, market trends, and trading risks.
To date, Binance remains the largest derivatives trading exchange by almost every measure. For organizations involved in derivatives on multiple exchanges, Amberdata offers a Binance Open Interest API as part of our aggregated crypto data API
Open interest and trading volume complement each other to provide a complete view of market sentiment and price action. By monitoring both metrics, you can assess a market’s strength and identify potential trends. For example, rising volume and open interest might signal a strong market trend, while falling volume and open interest may indicate a weakening trend or potential reversal.
Tracking historical and real-time changes in open interest is important for several reasons. The primary reason is that open interests present in-depth insights into market interest for gauging market sentiment, liquidity, trend strength, and trend reversals.
For traders, studying open interest data is crucial for making informed investment decisions. For managers in trading firms, these analytics can help you assess the potential benefits of adding crypto options to your company’s portfolio. For instance, significantly high OI in call options at a specific strike price may be indicative of a large number of traders expecting the asset’s value to reach that level.
By monitoring changes in open interest data, you can find patterns and trends that help to inform your trading strategies. Just as a high OI in a call option suggests a bullish trend, so does a high OI in a put option suggest a bearish trend. Traders can use options analytics data to capitalize on the market by holding or selling in a bullish or bearish market.
Sourcing reliable OI data is crucial for success in institutional trading environments. However, finding a vendor to deliver crypto options data can prove difficult as most solutions aren’t suited for enterprise clients. This is where Amberdata comes in.
Our open interest API endpoints provide comprehensive, granular crypto options OI data. Additionally, we offer OI APIs for Binance, the largest and most popular derivatives trading exchange. Using these datasets, you can monitor historical and real-time changes in open interest and identify patterns that can inform your decision-making.
In the meantime, explore more of our content about crypto options including our Bitcoin's Next Frontier: Institutional Demand in the World of Options and Futures Trading report.
Crypto Options Analytics: Volume vs. Open Interest