Let’s talk about the long-short ratio in futures.
The total number of long and short positions in the market is always equal. So, an account long-short ratio above 1 means short positions are concentrated among fewer accounts, with each short account holding a larger position on average.
One thing worth considering: the account long-short ratio counts accounts, so it’s more like a measure of the sentiment of the majority of traders. The top traders’ long-short ratio compares position sizes, so it better reflects which side large amounts of capital are betting on.
Don’t use the long-short ratio as a basis for opening a position. It’s more informative when viewed alongside open interest, funding rates, and price.
For reference: $BTC reports 82655.8 (24h +0.087%).
#BTC
Use this as a reference only; trade at your own risk.
The total number of long and short positions in the market is always equal. So, an account long-short ratio above 1 means short positions are concentrated among fewer accounts, with each short account holding a larger position on average.
One thing worth considering: the account long-short ratio counts accounts, so it’s more like a measure of the sentiment of the majority of traders. The top traders’ long-short ratio compares position sizes, so it better reflects which side large amounts of capital are betting on.
Don’t use the long-short ratio as a basis for opening a position. It’s more informative when viewed alongside open interest, funding rates, and price.
For reference: $BTC reports 82655.8 (24h +0.087%).
#BTC
Use this as a reference only; trade at your own risk.