Cryptocurrency Futures Long/Short Ratio (Top Trader Position & Top Trader Accounts & All Trader Accounts)
Symbol | Top Trader Long/Short (Holding Position) | Top Trader Long/Short (Holder's Accounts) | All Trader Long/Short (Holder's Accounts) | |||
|---|---|---|---|---|---|---|
Long | Short | Long | Short | Long | Short | |
Long/Short Overview
1. Top Traders Long/Short Ratio by Position
- Indicator Definition: This indicator measures the ratio of the total value or quantity of long positions held by large holders ("whales") to the total value or quantity of their short positions. It focuses on the actual open interest of large accounts in contracts.
It's important to note that different exchanges may have varying definitions of what constitutes a "large holder," and their calculations for the long/short ratio may also differ.
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Binance: The proportion of net long and net short positions to total open positions of the top 20% users with the highest margin balance.
Long Position % = Long positions of top traders / Total open positions of top traders
Short Position % = Short positions of top traders / Total open positions of top traders
Long/Short Ratio (Positions) = Long Position % / Short Position %
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Okx: The position long/short ratio of a contract for top traders. Top traders refer to the top 5% of traders with the largest open position value.
Long Position % = Long positions of top traders / Total open positions of top traders
Short Position % = Short positions of top traders / Total open positions of top traders
Long/Short Ratio (Positions) = Long Position % / Short Position %
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Indicator Interpretation:
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High Long/Short Ratio (Long Position Dominance): Indicates that the primary capital forces in the market are inclined to be bullish. However, it's also necessary to pay attention to the specific location of these long positions (e.g., whether they are concentrated around key resistance levels) and the overall market environment. An extremely high ratio may also foreshadow a sharp correction once these highly leveraged long positions decide to take profit.
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Low Long/Short Ratio (Short Position Dominance): Conversely, a low ratio implies that large capital anticipates a price decline, which can exert significant downward pressure on the price. Similarly, an extremely low ratio can sometimes lead to a short squeeze if the market unexpectedly rises.
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Ratio Trend Analysis: An increasing ratio may indicate that large holders are increasing their long positions, signaling growing confidence in the market. Conversely, a decreasing ratio may suggest that large holders are increasing their short positions or closing long positions, indicating weakening confidence in the market.
2. Top Traders Long/Short Ratio by Account Number
- Indicator Definition: This indicator focuses on the ratio of the number of large holder accounts with predominantly long positions to the number of large holder accounts with predominantly short positions. It reflects the breadth of bullish or bearish sentiment among the large trader community.
It's important to note that different exchanges may have varying definitions of what constitutes a "large holder," and their calculations for the long/short ratio may also differ.
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Binance: The proportion of net long and net short accounts to total accounts of the top 20% users with the highest margin balance. Each account is counted once only.
Long Account % = Accounts of top traders with net long positions / Total accounts of top traders with open positions
Short Account % = Accounts of top traders with net short positions / Total accounts of top traders with open positions
Long/Short Ratio (Accounts) = Long Account % / Short Account %
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Okx: The account net long/short ratio of a contract for top traders. Top traders refer to the top 5% of traders with the largest open position value.
Long Account % = Accounts of top traders with net long positions / Total accounts of top traders with open positions
Short Account % = Accounts of top traders with net short positions / Total accounts of top traders with open positions
Long/Short Ratio (Accounts) = Long Account % / Short Account %
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Indicator Interpretation:
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High Long/Short Ratio (More Bullish Accounts): A greater number of accounts favoring long positions indicates broader bullish sentiment.
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Low Long/Short Ratio (More Bearish Accounts): Conversely, a greater number of accounts favoring short positions reflects more widespread bearish sentiment. This can increase the likelihood of a potential decline.
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Consistency Signal: When both ratios move in the same direction (both high or both low), it is usually a stronger signal, indicating more consistent market sentiment among large traders.
3. Market Significance of Long/Short Ratios
Long/short ratios provide us with important information about the overall sentiment of the market's major participants. Large holders typically possess significant capital and informational advantages, and their position movements often have a significant impact on market prices. It is crucial to pay attention to the convergence and divergence between the large holder long/short ratio by position and the large holder long/short ratio by account number. Additionally, it's important to note that some large holders and institutions may use contracts as a hedging tool to offset their spot market positions. Therefore, while referencing these indicators, it's also necessary to combine them with other indicators and exercise your own reasonable judgment.