Many people think the contract long/short ratio is simple, but this is where it’s easy to get it wrong:
The platform-wide account long/short ratio = number of accounts with a net long position ÷ number of accounts with a net short position. Each account counts as one, regardless of how large its position is.
The long/short ratio shows how positions are distributed, not where prices are headed. When positions are heavily concentrated on one side, a move in the opposite direction could trigger a cascade of stop-losses.
Don’t use the long/short ratio as a basis for buying or selling. It’s safer to consider it alongside open interest, funding rates, and price.
The corresponding coin: $BTC is trading at 73666.46 (24h -0.23%).
#BTC
The platform-wide account long/short ratio = number of accounts with a net long position ÷ number of accounts with a net short position. Each account counts as one, regardless of how large its position is.
The long/short ratio shows how positions are distributed, not where prices are headed. When positions are heavily concentrated on one side, a move in the opposite direction could trigger a cascade of stop-losses.
Don’t use the long/short ratio as a basis for buying or selling. It’s safer to consider it alongside open interest, funding rates, and price.
The corresponding coin: $BTC is trading at 73666.46 (24h -0.23%).
#BTC
