【Term Explained】Does a high long/short ratio mean the market is bullish?
The large traders’ long/short position ratio is calculated using the top 20% of accounts by margin balance: the total size of their long positions divided by the total size of their short positions.
The account long/short ratio counts the number of traders, so it better reflects the tendencies of retail traders. The large traders’ long/short position ratio looks at position sizes, giving a better indication of which side top accounts are betting on.
The coin mentioned above: $BTC is quoted at 78470.7 (24h +1.33%).
Every return comes with corresponding risks. Consider the worst-case scenario first.
The large traders’ long/short position ratio is calculated using the top 20% of accounts by margin balance: the total size of their long positions divided by the total size of their short positions.
The account long/short ratio counts the number of traders, so it better reflects the tendencies of retail traders. The large traders’ long/short position ratio looks at position sizes, giving a better indication of which side top accounts are betting on.
The coin mentioned above: $BTC is quoted at 78470.7 (24h +1.33%).
Every return comes with corresponding risks. Consider the worst-case scenario first.
