Long/Short Ratio

The ratio of accounts holding long positions to accounts holding short positions on a futures market. 1.0 = balance.

The Long/Short Ratio (e.g. Binance Futures globalLongShortAccountRatio) counts ACCOUNTS, not volume. A small trader weighs the same as a whale. A ratio of 1.5 means 3 long accounts for every 2 short accounts. Extreme readings reveal one-sided crowd positioning. Historically, a heavily one-sided crowd has been fuel for the opposite move (long/short squeeze) because forced closures push price the other way. It is a sentiment/context gauge, not a trade signal.

In plain words

How many traders bet on a rise vs a fall. Above 1.0 more optimists, below more pessimists. When nearly everyone stands on one side, the market has historically liked to surprise them the other way.

Example

BTC shows a Ratio of 1.4, out of 10 accounts, 58% hold longs. If price falls, some of those longs get liquidated, which has historically deepened the drop (long squeeze). A 0.7 ratio mirrors this for shorts.

Also known as: long short ratio, lsr, ratio long short, wskaźnik long/short

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