The two directions
Long and short describe the direction of a market position. Going long means holding an asset, or a position, that is expected to benefit if the price rises. Going short means taking a position that is expected to benefit if the price falls. Together they let traders express a view in either direction rather than only when prices are climbing.
How a long position works
A long position is the more intuitive of the two. A trader acquires exposure to an asset and holds it, expecting the price to increase over time. If the price rises, the position gains value; if it falls, the position loses value. Buying and holding a cryptocurrency in the hope it appreciates is a simple example of being long.
How a short position works
A short position seeks to benefit from a decline. It typically involves borrowing an asset to sell it, with the aim of returning it later at a lower price. Shorting carries distinct risks because losses can grow as a price rises. On Tyrian Trade, these concepts are educational; the platform does not execute trades and is not a broker. Markets involve risk, including loss of capital.