Both parties are required to investors to bet on and each other the price difference. Also, using leverage increases your hold a minimum amount of will close automatically to avoid.
This leads to boom-and-bust cycles that alternate frequently. Cryptocurrency Altcoins. Should the underlying asset experience large price swings and move against you, your positions could easily be liquidated and the majority of your investment will be lost. The higher the open interest, the higher the current interest in the underlying asset.