Futures Trading | Long/Short Ratio
What it is: The total number of long and short positions across the market is always equal. So, a long/short ratio above 1 means short positions are spread across fewer accounts, with a larger average position per short account.
How it works: The long/short ratio reflects how positions are distributed, not the market’s direction. When positions are heavily concentrated on one side, a move in the opposite direction may trigger cascading liquidations.
Practical tip: When comparing long/short ratios, check whether they’re based on the number of accounts or position size—the same figure means different things under different measures.
$BTC 79704.45 (-0.35%)
It’s your money—your call.
What it is: The total number of long and short positions across the market is always equal. So, a long/short ratio above 1 means short positions are spread across fewer accounts, with a larger average position per short account.
How it works: The long/short ratio reflects how positions are distributed, not the market’s direction. When positions are heavily concentrated on one side, a move in the opposite direction may trigger cascading liquidations.
Practical tip: When comparing long/short ratios, check whether they’re based on the number of accounts or position size—the same figure means different things under different measures.
$BTC 79704.45 (-0.35%)
It’s your money—your call.
