Why can two long/short ratios for the same contract sometimes point in opposite directions?
My understanding: The long/short ratio reflects how positions are distributed, not price predictions. When positions become overly concentrated on one side, a move in the opposite direction can trigger a cascade of stop-losses.
In Binance’s publicly available contract statistics, the account long/short ratio and the top trader position long/short ratio are calculated at intervals as short as 5 minutes and cover Binance USDⓈ-M perpetual contracts.
My approach: When comparing long/short ratios, first check whether they’re based on the number of accounts or on positions. The same figure means different things under different measures.
Today’s market: $BTC reported 81425.29, down 2.89% over 24h.
My understanding: The long/short ratio reflects how positions are distributed, not price predictions. When positions become overly concentrated on one side, a move in the opposite direction can trigger a cascade of stop-losses.
In Binance’s publicly available contract statistics, the account long/short ratio and the top trader position long/short ratio are calculated at intervals as short as 5 minutes and cover Binance USDⓈ-M perpetual contracts.
My approach: When comparing long/short ratios, first check whether they’re based on the number of accounts or on positions. The same figure means different things under different measures.
Today’s market: $BTC reported 81425.29, down 2.89% over 24h.