Open Interest
In prediction markets, open interest measures how many positions remain unsettled. It counts all “Yes” and “No” shares that have not been closed or resolved.
Unlike trading volume, open interest does not reset over time. It increases when new positions are opened and decreases when positions are closed or the market resolves. High open interest usually signals sustained engagement. It suggests that many participants still have capital at risk and are waiting for the event outcome. Low open interest can indicate limited participation or a market that is winding down. It may also reflect that traders have already exited their positions.
For analysts, open interest provides insight into conviction and commitment. It helps distinguish between short-lived activity and durable participation within prediction markets data. Over time, changes in open interest help explain market lifecycle dynamics. Rising interest often aligns with growing attention, while declining interest may signal confidence or disengagement.
Why It Matters
Open interest shows how much capital and attention remain in a market. It helps users judge the strength and relevance of prediction markets signals.
What does open interest mean in prediction markets?
In prediction markets, open interest is the total number of outstanding shares or contracts. It represents positions that are still active and unresolved. This metric reflects ongoing commitment rather than short-term trading. It is a key indicator of market engagement.
How does open interest affect prediction markets data analysis?
Open interest helps analysts interpret probability movements more accurately. A price change with rising open interest suggests growing conviction. A change with falling open interest may reflect position unwinding. Including open interest improves signal interpretation and confidence assessment.
Why is open interest important when using prediction markets APIs?
Prediction markets APIs provide the data needed to track open interest over time. Analysts can monitor how participation builds or declines across events. This supports liquidity analysis, lifecycle modeling, and risk assessment. APIs make open interest measurable and comparable across prediction markets.
Real-World Example
On Polymarket, an election market may accumulate high open interest weeks before voting day. This indicates that many participants are holding positions and awaiting the final outcome.
Open Interest and FinFeedAPI
FinFeedAPI’s Prediction Markets API provides prediction markets data that can be used to calculate and monitor open interest. Analysts can track how open interest evolves alongside probabilities and volume. This supports engagement analysis, confidence weighting, and market health assessment. The API enables consistent open interest analysis across prediction markets.