Long/Short Ratio

The Long/Short Ratio shows the proportion of long positions versus short positions held by traders on a derivatives exchange. It provides insight into market sentiment by revealing how traders are positioned. Related indicators Long % and Short % show the individual percentages.

LS_Ratio = Number of Long Accounts / Number of Short Accounts
Long_Pct = (Long_Accounts / Total_Accounts) * 100
Short_Pct = (Short_Accounts / Total_Accounts) * 100
Long_Pct + Short_Pct = 100%

A ratio above 1.0 means more traders are long than short. A ratio below 1.0 means more traders are short. Note: this measures account count, not position size.

• Crowd sentiment indicator — shows how the majority of traders are positioned
• Contrarian use — when the crowd is overwhelmingly on one side, it often precedes a move in the opposite direction
• Range typically 0.5–2.0 — extreme readings outside this range are rare and significant
• Account-based — measures number of accounts, not volume or notional value

Contrarian signals

• LS Ratio > 1.5 (Long % > 60%) — crowd is heavily long, potential for a correction
• LS Ratio < 0.7 (Short % > 60%) — crowd is heavily short, potential for a squeeze
• LS Ratio near 1.0 — balanced market, wait for a clearer signal

Divergence

• Price rising + LS Ratio falling — price going up but crowd is selling, a potential bullish sign (retail is fading the trend)
• Price falling + LS Ratio rising — price going down but crowd is buying, a potential bearish sign (retail catching falling knife)

| Indicator | Description | |-----------|-------------| | LS_Ratio | Long/Short Ratio value | | LongPct | Percentage of long positions (0-100%) | | ShortPct | Percentage of short positions (0-100%) |

| Condition | Meaning | |-----------|---------| | LS_Ratio > 1.5 | Longs heavily dominate — contrarian short signal | | LS_Ratio < 0.7 | Shorts heavily dominate — contrarian long signal | | LongPct > 65 | More than 65% of accounts are long | | ShortPct > 60 | More than 60% of accounts are short | | LS_Ratio cross_over 1.0 | Sentiment shifts from short-dominant to long-dominant |

• The Long/Short Ratio is best used as a contrarian indicator — extreme crowd positioning often precedes reversals
• Combine with funding rate for a complete sentiment picture: extreme LS Ratio + extreme funding rate = strongest contrarian signals
• LS Ratio measures retail sentiment — institutional positioning may differ significantly
• Data availability is limited to the most recent ~500 data points per timeframe on Bybit