$JCT Global account long/short ratio: 0.47 (long 31.8% / short 68.2%).
At first, I thought a long/short ratio skewed toward longs meant there were more long positions than short positions across the whole market. Later, I realized the account long/short ratio counts people: an account with a tiny position and one with a huge position each count as one. That’s different from which side has more positions across the entire market—the totals are always equal.
The long/short ratio alone doesn’t tell you whether prices will rise or fall. It’s generally best to look at it together with open interest, funding rates, and price.
Unusually rare readings often signal greater volatility. At times like these, it’s better to reduce your position rather than add to it.
#JCT
At first, I thought a long/short ratio skewed toward longs meant there were more long positions than short positions across the whole market. Later, I realized the account long/short ratio counts people: an account with a tiny position and one with a huge position each count as one. That’s different from which side has more positions across the entire market—the totals are always equal.
The long/short ratio alone doesn’t tell you whether prices will rise or fall. It’s generally best to look at it together with open interest, funding rates, and price.
Unusually rare readings often signal greater volatility. At times like these, it’s better to reduce your position rather than add to it.
#JCT
