Thread by @SmokeyXBT

Read this tweet, and keep it in your head.

BitMEX Long vs Short Ratio will always, forever and ever, be 1 to 1.
Not more, not less, exactly 1 to 1.
Repeat after me: BitMEX Long vs Short Ratio is 1 to 1

Thanks for attending my TED Talk

Now, leverage is a whole other story. I‘ll give an example so it can be understood.
Open Interest is 200$ yeah? So 100 Contracts on the shortside, 100 contracts on the longside. Those 100 longcontracts could be backed by 10$ (using 10x lev) and the 100 shortcontracts by 100$

(So x1 leverage)
Basically in this example, the shortside is backed 1 to 1 by assets from those who‘ve opened up short positions, whilst the longside is not, the longs are leveraging their 10$ by 10, effectively using 10$ to open a 100$ position.

Therefore, Longs pay Shorts funding, because they‘re effectively lending size that they don‘t have at that time. Of course BitMex Perpetual Swap Price in relation to the BitMEX Index also flows into funding calculation, but this example flows into that calculation aswell.

To sum up. Longs vs Shorts ratio 1 to 1, but how those positions are backed varies, and the side that is lending more money for their positions pays the other side for funding their position during the period their position is open. (In intervals of 8 hours)

Watch this thread get basically 0 attention, though we‘ll see the same people talking about the long/short ratio on Mex not being 1 to 1 in the future smfh