What is Long & Short? (With simple examples)
Most beginners lose money in Futures because they donât clearly understand Long and Short.
So let me explain this in the simplest way possible.
đč What is Long?
You take a Long trade when you believe the price will go UP.
đ Example:
BTC price = $40,000
You think BTC will rise
You go Long
Price goes to $41,000 â You make profit
Simple.
đč What is Short?
You take a Short trade when you believe the price will go DOWN.
đ Example:
BTC price = $40,000
You think BTC will fall
You go Short
Price drops to $39,000 â You make profit
Yes, you can earn even when market falls.
đ§ Key thing to remember
Long = Buy expectation
Short = Sell expectation
But in Futures, wrong direction + leverage = fast loss.
â ïž Small reality check
Being right about direction is not enough.
Without risk management, even a small move against you can cause big losses.
đ Whatâs coming next?
Now that you understand Long & Short, the next big topic is Leverage â the reason most accounts get wiped.
đ Next post: What is Leverage? (The biggest risk in Futures)
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