The total number of long and short positions across the market is always equal, so how can the long/short ratio deviate from 1?
The total volume of long and short positions across the entire market is always equal. So when the long/short ratio by account is above 1, it means short positions are concentrated in fewer accounts, with each short account holding a larger position.
Here's the key point: don't use the long/short ratio as a basis for buying or selling. It's more useful to compare it with open interest, funding rates, and price.
For a real-time reference: $BTC , current price 81769.75, 24h +0.25%.
Limiting the amount you can lose on each trade to a small fraction of your total capital is more important than finding the perfect entry point.
The total volume of long and short positions across the entire market is always equal. So when the long/short ratio by account is above 1, it means short positions are concentrated in fewer accounts, with each short account holding a larger position.
Here's the key point: don't use the long/short ratio as a basis for buying or selling. It's more useful to compare it with open interest, funding rates, and price.
For a real-time reference: $BTC , current price 81769.75, 24h +0.25%.
Limiting the amount you can lose on each trade to a small fraction of your total capital is more important than finding the perfect entry point.