Open Interest Flush
An open interest flush is a rapid reduction in open interest as substantial derivatives exposure is removed from the market. It may result from liquidations, stop outs, voluntary position closures or a combination of these.
Why it matters to you
A sharp fall in OI can indicate that leveraged positioning has been significantly reduced. After a heavily leveraged market experiences a major OI flush, the positioning environment may look very different even if price later returns to similar levels.
Terms that sit next to this one
See the perpetuals front
The tools, the live market and the course.