BTC

$61105.748

-2.06%

ETH

$2973.575

-0.96%

BNB

$592.997

1.72%

XRP

$0.513

-1.80%

Glossary

Longing (Long Position)

November 21, 2023 - Around 3 mins mins to read

Understanding Longing (Long Position) in Crypto

Suppose you have a positive expectation for the value of Bitcoin to increase within a specific timeframe, prompting you to purchase it. This action is known as longing (long position) Bitcoin.

But what does it really mean?

Longing (long position) Bitcoin implies anticipating a significant rise in its value. It is a bullish approach, often adopted by professional traders when the market is expected to make or continue a bullish move. This strategy is also utilized in other asset classes such as stocks and securities.

Shorting vs. Longing (Long Position) in Crypto

These two terms reflect a trader’s belief regarding the rise or fall in the value of a cryptocurrency.

Cryptocurrency trading involves specific jargon that may be unfamiliar to novice traders. However, shorting and longing (long position) are relatively straightforward concepts that form the foundation of trading.

In a short position, traders anticipate a decrease in the price of a cryptocurrency from a specific point and sell it. This is known as “going short” or holding a short position. Conversely, when traders expect an increase in the price from a specific point, they buy the coin/token, also referred to as “going long”.

It is possible to go long or short on cryptocurrency using derivatives exchanges without actually buying or selling on spot markets.

In a bullish market, long positions outnumber short positions as traders aim to benefit from price ascension. Conversely, during a bearish market, short positions are more prevalent. However, it is common for professional traders and investors to buy when prices dip and sell when they rise again. It is important to note that these positions, particularly in Futures, carry liquidation risks. Therefore, thorough research is advised before taking such risks.

When to Open a Long Position (Longing)?

Ideally, traders should open a long position (longing) when they anticipate a price increase. However, it is crucial to base this decision on technical analysis conducted by experts. Traders may also consider fundamental analysis by actively participating in social media platforms, engaging with crypto communities, and staying updated with crypto news to gauge market sentiment before making a final decision.

There are numerous exchanges and trading platforms where traders can go long or short on cryptocurrencies. Apart from spot markets, long and short positions can also be held in Futures markets on various crypto trading platforms. Binance is one of the most renowned trading exchanges, with millions of traders engaging in such trades on a daily basis.

Avatar of Coincu

Author

Coincu

Glossary

Longing (Long Position)

Understanding Longing (Long Position) in Crypto

Suppose you have a positive expectation for the value of Bitcoin to increase within a specific timeframe, prompting you to purchase it. This action is known as longing (long position) Bitcoin.

But what does it really mean?

Longing (long position) Bitcoin implies anticipating a significant rise in its value. It is a bullish approach, often adopted by professional traders when the market is expected to make or continue a bullish move. This strategy is also utilized in other asset classes such as stocks and securities.

Shorting vs. Longing (Long Position) in Crypto

These two terms reflect a trader’s belief regarding the rise or fall in the value of a cryptocurrency.

Cryptocurrency trading involves specific jargon that may be unfamiliar to novice traders. However, shorting and longing (long position) are relatively straightforward concepts that form the foundation of trading.

In a short position, traders anticipate a decrease in the price of a cryptocurrency from a specific point and sell it. This is known as “going short” or holding a short position. Conversely, when traders expect an increase in the price from a specific point, they buy the coin/token, also referred to as “going long”.

It is possible to go long or short on cryptocurrency using derivatives exchanges without actually buying or selling on spot markets.

In a bullish market, long positions outnumber short positions as traders aim to benefit from price ascension. Conversely, during a bearish market, short positions are more prevalent. However, it is common for professional traders and investors to buy when prices dip and sell when they rise again. It is important to note that these positions, particularly in Futures, carry liquidation risks. Therefore, thorough research is advised before taking such risks.

When to Open a Long Position (Longing)?

Ideally, traders should open a long position (longing) when they anticipate a price increase. However, it is crucial to base this decision on technical analysis conducted by experts. Traders may also consider fundamental analysis by actively participating in social media platforms, engaging with crypto communities, and staying updated with crypto news to gauge market sentiment before making a final decision.

There are numerous exchanges and trading platforms where traders can go long or short on cryptocurrencies. Apart from spot markets, long and short positions can also be held in Futures markets on various crypto trading platforms. Binance is one of the most renowned trading exchanges, with millions of traders engaging in such trades on a daily basis.

Visited 75 times, 1 visit(s) today

Leave a Reply