If the total number of long and short positions across the market is clearly the same, why can the long/short ratio still differ from 1?
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 the size of its position.
Don’t treat the long/short ratio as an entry signal. You’ll get a more complete picture by comparing it with open interest, funding rates, and price.
Coin discussed: $BTC . Current price: 65506.01, 24h: -2.59%.
Have you ever misunderstood this before?
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 the size of its position.
Don’t treat the long/short ratio as an entry signal. You’ll get a more complete picture by comparing it with open interest, funding rates, and price.
Coin discussed: $BTC . Current price: 65506.01, 24h: -2.59%.
Have you ever misunderstood this before?