$NEAR Large traders' long/short position ratio: 2.59 (72.2% long / 27.8% short).
A beginner asks: What does the long/short position ratio for large traders mean?
The total volume of long and short positions across the entire market is always equal. If top accounts are net long overall, the remaining accounts must be net short overall.
The long/short ratio is like a vote, except votes are weighted by position size.
Position size is calculated based on the stop-loss distance, which is much more reliable than choosing it by gut feel.
A beginner asks: What does the long/short position ratio for large traders mean?
The total volume of long and short positions across the entire market is always equal. If top accounts are net long overall, the remaining accounts must be net short overall.
The long/short ratio is like a vote, except votes are weighted by position size.
Position size is calculated based on the stop-loss distance, which is much more reliable than choosing it by gut feel.