Long and short positions
A long position profits when the price rises. A short position profits when the price falls. Both can be liquidated if the price moves against you far enough.
Long
A long is a bet that the price will rise. On a USDT-margined contract the profit is (close price − entry price) × quantity. If the price falls instead, you lose that same amount, and a large enough fall liquidates the position.
Short
A short is a bet that the price will fall. The profit is (entry price − close price) × quantity. If the price rises, you lose. In principle the loss has no cap, because a price can keep rising, but a liquidation closes the position first.
On HedgerX
The order panel has Open Long and Open Short buttons, and the matching close button ends the position. When the funding rate is above zero, longs pay shorts. When it is below zero, shorts pay longs.
A spot holder can open a low-leverage short as a hedge. If the price falls, the profit on the short offsets the loss on the coins held. HedgerX describes this as a strategy for experienced traders. This page is not financial advice.
Frequently asked questions
Can I hold a long and a short at once?
On HedgerX, hedge mode lets you hold a long and a short in the same pair at the same time. You cannot change the mode while you have open positions or orders.
Why would anyone go short?
To profit from a falling price, or to offset losses on coins held in spot, which is called hedging.
Open a HedgerX account
To open a long or a short you need a HedgerX account. Register, secure it and start with a small position.
Registration takes a few minutes. HedgerX states that its services are not available in China, Turkey, Kazakhstan and Indonesia. Futures trading can liquidate your position. This page is not financial advice.
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