The Basic Logic of Long and Short
Going long (Long): You believe BTC's price will rise. You "buy" a contract at the current price, and when the price goes up, you "sell" the contract to close the position and pocket the difference.
Going short (Short): You believe BTC's price will fall. You "sell" a contract at the current price, and when the price drops, you "buy" the contract back to close the position and pocket the difference.
Going long works the same as spot — buy low, sell high. Going short is the reverse — sell high, buy low. Regardless of whether the market goes up or down, you can profit as long as you call the direction correctly.
How to Go Long: Step by Step
Using a BTC long as an example:
Step 1: Open the Futures Trading Page
App → Trade → Futures → search "BTCUSDT" → select BTCUSDT Perpetual
Step 2: Set Leverage and Margin Mode
Above the order area:
- Tap the leverage button and set it to 2-3x (recommended for beginners)
- Tap the margin mode button and select "Isolated" (recommended for beginners)
Step 3: Place a Buy/Long Order
- Make sure the order area shows the "Buy/Long" tab (green)
- Choose your order type:
- Market order: Enter the margin amount you want to commit (e.g., 50 USDT), and the system opens the position at the current price immediately
- Limit order: Enter a target entry price first, then the margin amount. The position opens when the price reaches your target
- Tap "Buy/Long"
- Confirm in the popup to open the position
Step 4: Set Take-Profit and Stop-Loss
Set TP/SL immediately after opening the position (this is critical):
- Find your long position in the positions list
- Tap the "TP/SL" button
- Set the stop-loss price (below your entry — e.g., at a 5% drop)
- Set the take-profit price (above your entry — e.g., at a 10% gain)
- Confirm
Step 5: Close the Position
When you want to exit the trade, tap the "Close" button in the positions list:
- Market close: Closes at the current price immediately
- Limit close: Set a sell price and wait for it to fill
After closing, the P&L is automatically settled into your futures account.
How to Go Short: Step by Step
The process for going short is nearly identical to going long — just in the opposite direction.
Key Differences
- In the order area, select the "Sell/Short" tab (red)
- Set the stop-loss above your entry price (because when short, a price rise means you lose money)
- Set the take-profit below your entry price (because when short, a price drop means you make money)
Short Trade Flow
- Select BTCUSDT Perpetual
- Set leverage (2-3x) and Isolated margin mode
- Switch to the "Sell/Short" tab
- Enter your margin amount
- Tap "Sell/Short"
- After opening, set stop-loss (above entry) and take-profit (below entry)
Short Trade Example
BTC current price: 65,000 USDT. You believe it will drop:
- Margin: 100 USDT, 3x leverage
- Position value: 300 USDT
- Stop-loss at 67,000 USDT (loss of roughly 9 USDT, or 3% of position)
- Take-profit at 62,000 USDT (profit of roughly 14 USDT, or 4.6% of position)
If BTC drops to 62,000, your position auto-closes with a 14 USDT profit. If BTC rises to 67,000, the stop-loss triggers with a 9 USDT loss.
Position Management
Viewing Positions
The "Positions" tab at the bottom of the futures trading page shows all your open positions, including:
- Direction (Long/Short)
- Entry price
- Current mark price
- Unrealized P&L (current floating profit or loss)
- Margin
- Leverage
- Estimated liquidation price
Adding Margin
If your position is close to liquidation, you can add margin to reduce the risk:
In the positions list, tap your position → Add Margin → enter amount → confirm
Adding margin pushes your liquidation price further away, giving you more buffer. However, if the market trend is truly against you, repeatedly adding margin may only increase your eventual loss.
Partial Close
You do not have to close your entire position at once. You can close a portion:
- When closing, enter a specific quantity instead of selecting "All"
- For example, if you hold a 0.01 BTC contract, close 0.005 BTC to lock in partial profit while keeping the rest open
Opening a Position in the Opposite Direction
If you currently hold a long position, you can open a short position directly. In the default "Hedge Mode," long and short positions can coexist simultaneously. In "One-Way Mode," opening a reverse position will close the existing one first.
When to Go Long vs. Short
When to Go Long
- The market is in an overall uptrend
- BTC bounces off a key support level
- Major positive news (e.g., ETF approval, institutional buying)
- Technical indicators show oversold conditions (e.g., RSI below 30)
When to Go Short
- The market is in an overall downtrend
- BTC gets rejected at a key resistance level
- Major negative news (e.g., regulatory crackdowns)
- Technical indicators show overbought conditions (e.g., RSI above 70)
When to Stay Out
- Market direction is unclear, and price is ranging sideways
- You do not have a clear thesis on the current situation
- A major news event is imminent but the outcome is uncertain
- You are emotionally unstable (e.g., trying to recover from a recent big loss)
Sometimes the best trade is no trade. If you do not have a clear read on the market, do not open a position.