Why do the two long/short ratios for the same contract sometimes point in opposite directions?
This is how I understand it: the account long/short ratio looks at the number of accounts, so it more closely reflects the tendencies of the majority of traders. The top trader long/short ratio compares position sizes, so it better shows which side the largest accounts are betting on.
The overall account long/short ratio is the number of net-long accounts ÷ the number of net-short accounts. Each account counts as one, regardless of its position size.
Back to the market: $BTC is currently at 78523.17, up 1.9% over 24h.
This is how I understand it: the account long/short ratio looks at the number of accounts, so it more closely reflects the tendencies of the majority of traders. The top trader long/short ratio compares position sizes, so it better shows which side the largest accounts are betting on.
The overall account long/short ratio is the number of net-long accounts ÷ the number of net-short accounts. Each account counts as one, regardless of its position size.
Back to the market: $BTC is currently at 78523.17, up 1.9% over 24h.
