Someone asked: Does a high long-short ratio mean the market is bullish?
I usually answer like this: The total number of long and short positions in the market is always equal, so an account long-short ratio above 1 means short positions are concentrated in fewer accounts, with a larger average position per short account. The account long-short ratio looks at the number of accounts, so it reflects the sentiment of the majority of traders; the long-short ratio of large traders' positions looks at position size, showing which side the top accounts are betting on.
$BTC 78376.01（+0.95%）
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I usually answer like this: The total number of long and short positions in the market is always equal, so an account long-short ratio above 1 means short positions are concentrated in fewer accounts, with a larger average position per short account. The account long-short ratio looks at the number of accounts, so it reflects the sentiment of the majority of traders; the long-short ratio of large traders' positions looks at position size, showing which side the top accounts are betting on.
$BTC 78376.01（+0.95%）
If you found this useful, save it to read again later.