I'm trying to understand how to interpret the long short ratio. Could someone explain what it means and how to read it when analyzing market data or making investment decisions?
The long short ratio is determined by comparing the number or value of long positions to the number or value of short positions.
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RaffaeleMon Dec 02 2024
Specifically, this ratio is calculated by dividing the quantity of long positions by the quantity of short positions.
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WindRiderMon Dec 02 2024
For instance, if a trader possesses 1,000 shares in long positions, and simultaneously holds 500 shares in short positions, the calculation is straightforward.
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Chloe_emma_researcherMon Dec 02 2024
In this particular case, the ratio of long to short positions would be 2:1.
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LucaSun Dec 01 2024
This ratio is often utilized as an indicator of market sentiment, providing insights into the level of Optimism or pessimism among traders.