Long/Short Ratio (Binance)
Long/Short Ratio (Binance) measures the ratio of long positions to short positions among ICP derivative accounts on Binance. It provides a quick view of the relative bullishness or bearishness of the market by comparing how many accounts are holding long positions versus short positions at a given time.
How to interpret changes
- Rising Long/Short Ratio indicates a growing dominance of long positions relative to shorts, suggesting increased bullish sentiment among accounts.
- Stable Ratio implies a balance between long and short positions, indicating relatively neutral market sentiment.
- Declining Ratio reflects a higher prevalence of short positions compared to longs, potentially signaling bearish sentiment or increased hedging activity.
Data Characteristics
- Calculated as Long Positions ÷ Short Positions across active derivative accounts.
- Reflects account counts, not the size, leverage, or capital behind positions.
- Provides a relative view of market positioning rather than absolute exposure.
Limitations
- Based on number of positions, not notional value—small and large accounts have equal weight in the ratio.
- Does not indicate conviction, leverage, or liquidation risk; only relative positioning.
- Historical data is limited due to Binance API constraints, so full long-term coverage is unavailable.
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