Long vs Short

The longs vs shorts ratio refers to the comparison between the exchange's active buying volume and active selling volume, which can reflect the market order flow imbalance.
The Buy/Sell Taker Ratio is a sentiment analysis tool that determines market sentiment by examining the balance of buying and selling pressures. It helps identify the intensity of rising or falling trends by comparing the volume of market orders that result in asset acquisition to those that result in asset disposal over a specified period. For a more complete market analysis, traders should use this ratio alongside other indicators which will aid in making sound trading decisions.

Main Takeaways

  • The Long/Short Ratio is a sentiment analysis indicator that relates to market participants' opinions and actions.
  • It is calculated by dividing the number of long positions by the number of short positions.
  • A high ratio suggests bullish market sentiment, while a low ratio suggests bearish market sentiment.
As per Binance (source), Traders can analyze the Long/Short Ratio to understand how traders are positioning themselves for future price action. The Long/Short ratios are tracking the proportion of open longs vs open shorts on Binance futures