Let’s talk about the long/short ratio for futures.
The top-trader long/short ratio looks at accounts in the top 20% by margin balance and divides their total long positions by their total short positions.
One thing that’s easy to overlook: the account long/short ratio counts traders, so it more closely reflects the sentiment of the majority. The top-trader long/short ratio measures position size, showing which side the largest accounts are betting on.
Don’t use the long/short ratio as a basis for trading decisions. It’s safer to compare it with open interest, funding rates, and price.
By the way: $BTC is quoted at 81728.92 (24h +0.17%).
#BTC
The top-trader long/short ratio looks at accounts in the top 20% by margin balance and divides their total long positions by their total short positions.
One thing that’s easy to overlook: the account long/short ratio counts traders, so it more closely reflects the sentiment of the majority. The top-trader long/short ratio measures position size, showing which side the largest accounts are betting on.
Don’t use the long/short ratio as a basis for trading decisions. It’s safer to compare it with open interest, funding rates, and price.
By the way: $BTC is quoted at 81728.92 (24h +0.17%).
#BTC