⚠️#JUST IN ⚠️
🚨DIFFRECE BETWEEN LONG AND SHORT POSITIONS 🚨
📉📊LONG POSITION
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A long position (or simply long) means buying an asset with the
expectation that its value will rise. Long positions are often used in the
context of derivatives products, but they apply to basically any asset class
or market type. Buying an asset on the spot market in the hopes that its
price will increase also constitutes a long position.
Going long on a financial product is the most common way of investing,
especially for those just starting out. Long-term trading strategies like buy
and hold are based on the assumption that the underlying asset will
increase in value. In this sense, buy and hold is simply going long for an
extended period of time.
However, being long doesn't necessarily mean that the trader expects to
gain from an upward movement in price. There are derivatives products
that are inversely correlated with the price of the underlying asset.
For example, a token called iBTC is inversely correlated with the price of
BTC. If the price of BTC goes down, the price of iBTC goes up, and vice
versa. So, if you're in an iBTC long position, that effectively means that you
expect the price of BTC to go down.
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