Futures Data Analysis
#Futures
Futures data represents market sentiment and capital flow, which can influence market trends and serve as a reference and guidance for futures trading. Traders should understand futures data and be able to interpret indicators to make informed decisions. On MEXC, you can check four futures data points, including: the platform's long-short position holders ratio, platform's active buys and sells, elite account long-short position holding ratio, and elite account long-short position holders ratio.
1. Futures Data Definitions
1.1 Platform's Long-Short Position Holders Ratio
The platform's long-short position holders ratio refers to the proportion of users holding long positions compared to those holding short positions on MEXC.
For example, as of 8:00 AM on November 18, the long position holders ratio was 65.04%, while the short position holders ratio was 34.95%, resulting in a long-to-short ratio of 1.86. This indicates that more users are holding long positions than short positions, with the number of long position holders being 1.86 times that of short position holders.
1.2 Platform's Active Buys and Sells
The platform's active buys and sells refers to the ratio of active buys to active sells within a specified time frame, primarily focusing on short-term trading volumes within 1 hour. As shown in the chart below, you can clearly see the hourly active buy and sell volumes on MEXC, along with their respective ratios.
1.3 Elite Account Long-Short Position Holding Ratio
The elite account long-short position holding ratio is the ratio of the number of long positions held by elite accounts to the number of short positions held by elite accounts on MEXC.
As of 8:00 AM on November 18, the data shows a long position ratio of 75.73% and a short position ratio of 24.26%, resulting in a long-to-short ratio of 3.12. This indicates that the number of long positions is 3.12 times greater than that of short positions.
1.4 Elite Account Long-Short Position Holders Ratio
The elite account long-short position holders ratio refers to the ratio of the number of long position holders in elite accounts to the number of short position holders in elite accounts on MEXC.
As of 8:00 AM on November 18, the data shows a long position ratio of 64.52% and a short position ratio of 35.47%, resulting in a long-to-short ratio of 1.76. This indicates that the number of users holding long positions is 1.81 times greater than those holding short positions.
2. Interpreting Futures Data
2.1 Long-Short Position Holding Ratio and Long-Short Position Holders Ratio
On cryptocurrency exchanges, futures are peer-to-peer transactions between users, and the total position value of long positions and short positions must be equal, establishing a 1:1 relationship. If one user opens a long position of 10 BTC, there must be one or more users with short positions of 10 BTC on the other side. Otherwise, the order for the 10 BTC long position would not be fillable.
In a situation where the total position value is fixed, a high long-short position holding ratio and long-short position holders ratio indicate that although there are more bullish participants, the average position value per person is lower, suggesting that retail traders are bullish. Conversely, a low number of short position holders with a high average position value per person indicates that a greater percentage of large traders are bearish. The long-short position holding ratio and position holders ratio essentially reflect the market sentiment difference between retail investors and whales, with larger ratios indicating greater sentiment disparities. Generally, institutional traders possess more professional trading skills and have access to a broader range of information, making their positions somewhat of a reference point.
2.2 Platform's Active Buys and Sells
The statistical data of active buys and sells within a 1-hour period reflects short-term fluctuations in market sentiment. When the volume of active buys exceeds active sells, it indicates a higher short-term bullish sentiment in the market. Conversely, if the active sell volume is greater, it suggests a severe short-term bearish sentiment, with a significant number of users engaging in short selling.
3. How to View Futures Data
Click on [Futures] - [Futures Overview].
Scroll down the page until you see "Futures Big Data" and click on [View More].
On the right side, you can select the futures trading pair whose data you want to see. Currently, MEXC supports USDT-M perpetual futures trading data for mainstream cryptocurrencies, such as BTC USDT perpetual futures, ETH USDT perpetual futures, and so on.
Please note that the analysis presented above is based on theory, and in real-world trading markets, a multitude of factors can impact market dynamics. The long-short ratio can be subject to distortions and may not accurately reflect the true balance between retail and institutional traders or their actual long or short inclinations.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.