Recently, I've noticed many newcomers in crypto asking about Long and Short, so I want to share some basic understanding. Actually, when you step into the trading world, these two concepts will appear constantly, and understanding long and short orders is the foundation to avoid continuous losses.

First, I'll explain about Position—the so-called trading stance. Simply put, it’s the state of holding a certain currency pair in the market. There are two main positions: long position and short position. When you open a long position, you buy a currency pair with the expectation that the price will rise to make a profit. Conversely, a short position is when you sell short, predicting the price will fall to profit.

But the interesting part is how traders use long and short orders. When you predict the price will go up, you shouldn’t invest all your money at once. Instead, divide your capital to buy at different price levels—this is called position scaling. When the price actually rises, you take partial profits. For example, buying EUR/USD means you buy EUR and sell USD at the same time.

On the other hand, with short, when you believe the price will decrease, you sell short—that is, sell what you don’t own. To do this, you need an account with leverage and margin. When the price drops, you close your short positions to lock in profits. Selling EUR/USD = Selling EUR + Buying USD.

The tricky part of trading is psychology. When too many traders open long positions simultaneously, the exchange rate can spike rapidly. Conversely, when short orders are too concentrated, the price can plummet uncontrollably. That’s why you see crazy market fluctuations in a very short time.

I want to emphasize: long and short orders are closely related to price speculation. Therefore, whenever you trade, always set a stop loss to avoid unnecessary losses. Remember, until you close the trade, profit or loss is only on paper. Only when you take profit or cut losses does that number become real.

Understanding long and short will give you a deeper insight into how the cryptocurrency market operates. If you’re just starting out, learn these concepts thoroughly before putting money into any order.