Glossary
What is Long/short ratio
The share of accounts or positions long versus short in exchange data: it shows how lopsided the crowd is, but not position size and not where price goes.
How it works
Example
3,000 accounts long and 2,000 short: 3,000 / 2,000 = 1.5, so 60% are long. But the shorts may hold twice the volume, and by money the skew is the other way.
Common mistake
Fading the crowd off a single number: accounts count equally, money does not.
Read next
Related terms
Frequently asked questions
- Where can I learn Long/short ratio step by step?
- In the Trading OS Academy: “How an exchange matches buyer and seller”.
- What is Long/short ratio related to?
- Open interest; Funding rate; Squeeze.
Plan versus outcome — for every trade
The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.
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