Long Short Ratio
A long short ratio compares a selected measure of long positioning with short positioning. The exact methodology varies by platform and data provider. It may refer to accounts, positions, traders or another measure.
Why it matters to you
A long short ratio can provide information about positioning or trader bias within the dataset being measured. But it must be interpreted carefully. A market does not contain more contracts on the long side than the short side overall because every derivative position has a counterparty. A reported long short ratio therefore describes a particular measurement of participants or positioning, not an imbalance in the total number of contract sides.
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