Read the Positioning, Then Trace a Cascade

A new buyer trades 50 contracts with a new seller. What happens to open interest?

• It rises by 50
• It rises by 100, one for each side
• It stays the same, because buys and sells cancel

Why is a liquidation print a poor reason to enter a trade?

• Liquidations are reported with a long delay
• The forced orders have already traded and are in the price, and nothing in the print shows where the next liquidation prices sit
• Liquidations only happen on one venue at a time