$ETH

Buy Position (Long)

Sell Position (Short)

When to use it?

When you expect the price to go up

When you expect the price to go down

How do you profit?

You buy now at a low price and sell later at a higher price

You sell now at a high price and buy back later at a lower price

Practical example

Buy Bitcoin at 50,000 and sell it at 55,000 (Profit: 5,000)

Sell Bitcoin at 50,000 and then buy it back at 45,000 (Profit: 5,000)