Continuing from the previous discussion on the funding rate of #BTC☀ and the contract #多空比 , we often see that the funding rate is around 0.01, which actually indicates that the long positions are relatively more. However, some friends like to completely place the long-short ratio and the funding rate in opposition. In reality, when the long-short ratio is often seen below 1, it means there are relatively more short positions, but in terms of holdings, the long positions still dominate, because the design logic of #资金费率 is that the market is bullish for it to be positive, and it is also based on the scale of long and short holdings for mutual payments; when the long position proportion is high, it means there is more payment in a short state.

The fact that the long-short ratio has slightly more short positions does not carry as much significance as the data regarding holdings affecting the market itself, due to matching and liquidity mechanism issues. In a phase of rising market, having a long-short ratio slightly below 1 is relatively normal, as short-term speculators may reduce their long positions to take profits during an upward movement, while short-term shorts may intervene, resulting in this slightly below 1 data level. Important data should still focus on the overall long-short ratio of holdings and the long-short ratio of major holders.

When expressing the long-short ratio, it should still include the ratio of the number of long to short positions or the ratio of holdings/active buying and selling volume (overall long-short holding ratio)/major holder long-short ratio, to avoid ambiguity, as the values of both can often show opposing situations. However, by understanding different types of long-short ratios, one can grasp the corresponding meanings. The chart shows the overall long-short ratio of #coinank .