When trading on platforms like the one shown above, you’ve probably come across two main options: Buy Long and Sell Short. But what do they actually mean, and how do they impact your trading strategy?
At ACS Vision, we’re all about making technology and financial tools easy to understand. Here’s a simple breakdown:
✅ Buy Long – Betting the Price Will Go Up
What it means:
When you Buy Long, you’re buying an asset (like Bitcoin) with the expectation that its price will increase. If it does, you can sell it later at a higher price to make a profit.
Example:
You buy 1 BTC at $118,000. Later, the price goes up to $120,000. You sell it, and your profit is the difference — $2,000 (excluding fees).
You use this strategy when:
- The market looks bullish (positive).
- You believe the price will rise over time.
- You’re comfortable holding the asset while it grows.
🔻 Sell Short – Betting the Price Will Go Down
What it means:
When you Sell Short, you’re borrowing an asset to sell it at the current price, hoping that the price will fall. Then, you buy it back at a lower price and return it — keeping the difference as profit.
Example:
You sell 1 BTC at $118,000. The price drops to $115,000, and you buy it back. You made $3,000 profit.
You use this strategy when:
- The market looks bearish (negative).
- You believe the asset’s price will fall.
- You want to profit from a declining market.
🧠 Key Things to Know
- Market Order: Executes your trade at the current best price.
- Leverage (10x in the image): Allows you to trade with more than your available capital — but increases risk.
- TP/SL (Take Profit / Stop Loss): Tools to manage your risk by automatically closing trades at set profit or loss levels.
⚠️ Trading Isn’t Without Risk
Both strategies have their risks. If the market moves against your prediction:
- A long trade could lead to losses if prices fall.
- A short trade could lead to losses if prices rise instead.
That’s why risk management is crucial — especially when using leverage.
🧭 Conclusion
In summary:
- Buy Long = You think the price will go up.
- Sell Short = You think the price will go down.
Understanding these basics is essential whether you’re new to trading or just getting started with platforms like perpetual contracts. At ACS Vision, we’re here to help you navigate the world of digital tools and financial tech with confidence.