Everyone who enters the crypto money market has heard from the first day, but there are always confusing terms. The two most intriguing terms of these are the terms "long and short position".
These terms reflect whether the value of units will increase or decrease in cryptocurrency trading.
To put it briefly, if a currency is thought to rise, long position is called short position if it is thought to decrease. For this reason, the term long position is used to buy, while the term short position is used when selling.
Long Position
To explain the long position term in a simpler example, you thought that gold prices will increase and you want to take advantage of this opportunity more. 1 bullion of gold is 1000 dollars. Let's say you only have $ 1000 to invest.
However, you want to buy 3 bullion gold instead of 1 gold bullion, thinking that gold will be valued. For this reason, when you buy gold, you buy 3 bars of gold with 1000 dollars.
Even if you do not have 3 bullion gold, you are making a deed that you have 3 gold bullion. If gold rises later, you pay off your debt and get your profit. However, if it falls, you do not make a profit or even lose all your money.
Therefore, you should definitely know how to read graphics in such investments that require expertise. In fact, we recommend that you follow the whole market closely, not just reading graphics. In addition, even if you are doing all of these in some cases, the cryptocurrency market has a volatile nature, so even a statement made by an important political or economic name can reverse all of these. During this process, you can hear some investors saying "I'm long".
Short Position
Short position is called to sell when the price is still high, assuming that the vehicle you invest in will fall. Again, if we go through the example, you have 1 gold bullion in your hand and you assume that the gold will fall. On top of that, you sell 1 bullion gold while its price is high, then you buy gold again when the price of gold drops.
Thus, you have both 1 gold bullion and a profit. In this case, you can hear the investors saying "I'm short".
The examples given here are provided for the sake of clarity only. Therefore, it is completely independent with the market. If you want to earn by long or short on the crypto money exchange, you should definitely make an assessment in line with your own research. Then make your investments in line with your own values.