Long and short
- A long is a position that makes money when price goes up. Buy low, sell high - the kind of investing most people already know.
- A short is a position that makes money when price goes down. You sell first, then buy back cheaper later and keep the difference.
Stock traders use the same terms. But in crypto futures, anyone can open a short easily, and leverage lets you open a big position with a small margin - so longs and shorts come up far more often.
What is the long/short ratio?
The long/short ratio shows whether traders have bet more on longs or on shorts. For example, "Long 43% · Short 57%" means more money is riding on the short side.
Look at the money, not the headcount
The long/short ratios exchanges publish are often based on number of accounts. But someone betting $100 and someone betting $100 million move the market very differently.
WhaleCue tracks only whales holding large positions and shows long/short by dollar amount. On top of that, we show you separately which side the whales with the best track records are on.
Things to watch out for
- When it leans too far one way, it can flip. If everyone is long, there's no one left to buy, and even a small dip can set off a chain of long liquidations.
- The change matters more than the ratio. "Long went from 50% yesterday to 60% today" tells you more than "long is 60% today."
- Read it with the liquidation map. If longs dominate and there's a big long liquidation wall right below the current price, a drop can pick up speed fast.