Learning and Communication

Many friends might be puzzled as to why Binance's contract trading data uses complex terms like 'large holder long-short ratio' and 'long-short ratio' instead of simply telling us whether there are more bulls or bears. In fact, there are many nuances to this, and I will help you understand it well!
It is not simply telling us whether there are more bulls or bears. In fact, there are many nuances to this, and I will help you understand it well!
Contracts must exist in a 1:1 pairing of longs and shorts; if there are 100 long contracts in the market at a certain moment, there must be 100 short contracts as well.
So how do we see the long-short direction?
We need to combine multiple trading data from Binance:
First of all, the [long-short ratio] indicator is likely to be a contrarian indicator; retail investors are almost always on the opposite side of the market.