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Long vs Short Positions Explained

Going long profits when prices rise and going short when they fall. Understand both, and the risks of shorting.

Going long

A long position profits if the price rises. Buying a coin on the spot market is the simplest form of going long.

Going short

A short position profits if the price falls. In crypto you usually short with futures or margin, which let you take a position without owning the coin.

Different risk profiles

With a long spot position your loss is limited to what you invested. A short position can lose more than expected if the price rises sharply, and leveraged positions can be liquidated.

Practical advice

Start small, use stop-loss orders and avoid leverage until you understand how margin and liquidation work. Treat shorting as an advanced tool.

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Educational content only, not financial advice. Crypto assets carry a high risk of loss.

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Look up unfamiliar words in the crypto glossary or browse coin markets.