The total number of long and short positions across the entire market is inherently equal, so how can the long/short ratio deviate from 1?
First, what it measures: the top traders' long/short position ratio looks at accounts in the top 20% by margin balance and divides their total long position size by their total short position size.
Why it works this way: the account long/short ratio counts the number of accounts, so it better reflects the tendencies of retail traders. The top traders' long/short position ratio measures position sizes, so it better reflects which side large investors are betting on.
In the context of current market conditions: $BTC Current price: 76134.02 (24h -5.31%).
Beginners are advised to start with low leverage and small amounts.
#BTC
First, what it measures: the top traders' long/short position ratio looks at accounts in the top 20% by margin balance and divides their total long position size by their total short position size.
Why it works this way: the account long/short ratio counts the number of accounts, so it better reflects the tendencies of retail traders. The top traders' long/short position ratio measures position sizes, so it better reflects which side large investors are betting on.
In the context of current market conditions: $BTC Current price: 76134.02 (24h -5.31%).
Beginners are advised to start with low leverage and small amounts.
#BTC