Long vs. short

One of the most powerful things about perpetual futures is that you can profit from price movements in either direction. This is done through two types of positions: long and short.

Going long

Opening a long position means you're betting that the price of an asset will go up. If you're right and the price rises, you make a profit. If the price falls, you take a loss.

Example: You open a long position on Bitcoin at $60,000. The price rises to $65,000. Your position has gained value.

This is the direction most people are familiar with — it's essentially the same logic as buying an asset and hoping it appreciates.

Going short

Opening a short position means you're betting that the price of an asset will go down. If the price falls, you profit. If it rises, you take a loss.

Example: You open a short position on Bitcoin at $60,000. The price drops to $55,000. Your short position has gained value.

Shorting is a powerful tool in a declining or volatile market. It lets you potentially profit in conditions where regular spot traders would be sitting on losses.

Which should you choose?

That depends entirely on your view of the market. Before opening any position, you should have a clear reason for why you believe the price will move in a particular direction. Perps aren't a guessing game, the more informed your trade, the better.