Hardcore Contract Trading Knowledge: The Long/Short Ratio
The long/short ratio describes how positions are distributed, not which way the price is headed. When one side gets especially crowded, a move in the opposite direction can trigger a cascade of liquidations.
When looking at the long/short ratio, check whether it’s based on the number of accounts or position size—the same figure means different things depending on the metric.
Market update: $BTC is trading at 77905.65 (24h +0.44%).
When did you first figure this out?
It’s your money—think it through before you act.
The long/short ratio describes how positions are distributed, not which way the price is headed. When one side gets especially crowded, a move in the opposite direction can trigger a cascade of liquidations.
When looking at the long/short ratio, check whether it’s based on the number of accounts or position size—the same figure means different things depending on the metric.
Market update: $BTC is trading at 77905.65 (24h +0.44%).
When did you first figure this out?
It’s your money—think it through before you act.
