$Q ｜Platform-wide account long/short ratio: 0.43｜Long 29.9% / Short 70.1%
Before looking at positions, first understand the platform-wide account long/short ratio.
It’s common for this ratio to rise during a downturn. One explanation is that many small accounts like to buy the dip.
The long/short ratio alone can’t tell you whether prices will rise or fall. It should generally be considered alongside open interest, funding rates, and price.
The purpose of understanding an indicator is to avoid being misled by the numbers, not to use it to pinpoint market tops and bottoms.
#Q
Before looking at positions, first understand the platform-wide account long/short ratio.
It’s common for this ratio to rise during a downturn. One explanation is that many small accounts like to buy the dip.
The long/short ratio alone can’t tell you whether prices will rise or fall. It should generally be considered alongside open interest, funding rates, and price.
The purpose of understanding an indicator is to avoid being misled by the numbers, not to use it to pinpoint market tops and bottoms.
#Q