$NEAR Large-holder position long/short ratio 2.51 (long 71.5% / short 28.5%).
At first I always thought that a skewed long/short ratio meant that the whole market had more long positions than short positions. Only gradually did I understand: the large-holder long/short ratio does not reflect the market’s overall longs and shorts, but rather the ratio of long and short positions among the top 20% of margin users; the total number of long and short positions across the whole market is always the same, and if these large holders are more heavily long, it means the remaining accounts are more heavily short.
The long/short ratio only counts contract positions; buy and sell orders in spot trading are not included, so using it to infer the entire market should be discounted.
Unusual data usually means more extreme volatility, and at times like this it is even more important to reduce leverage rather than place a big bet.
#NEAR
This is just my personal opinion, please view it rationally.
At first I always thought that a skewed long/short ratio meant that the whole market had more long positions than short positions. Only gradually did I understand: the large-holder long/short ratio does not reflect the market’s overall longs and shorts, but rather the ratio of long and short positions among the top 20% of margin users; the total number of long and short positions across the whole market is always the same, and if these large holders are more heavily long, it means the remaining accounts are more heavily short.
The long/short ratio only counts contract positions; buy and sell orders in spot trading are not included, so using it to infer the entire market should be discounted.
Unusual data usually means more extreme volatility, and at times like this it is even more important to reduce leverage rather than place a big bet.
#NEAR
This is just my personal opinion, please view it rationally.