How can two long/short ratios for the same contract point in opposite directions?
The large traders’ long/short ratio is based on accounts in the top 20% by margin balance. It divides the total long positions held by these accounts by their total short positions.
Key takeaway: Before comparing long/short ratios, check whether they’re based on account numbers or position sizes. The same figure means different things under different metrics.
For market context: $BTC Current price: 81762.17 (24h: -2.11%).
Before opening a position, calculate your liquidation price. If it’s too close to the current price, reduce your position size.
The large traders’ long/short ratio is based on accounts in the top 20% by margin balance. It divides the total long positions held by these accounts by their total short positions.
Key takeaway: Before comparing long/short ratios, check whether they’re based on account numbers or position sizes. The same figure means different things under different metrics.
For market context: $BTC Current price: 81762.17 (24h: -2.11%).
Before opening a position, calculate your liquidation price. If it’s too close to the current price, reduce your position size.