Long vs. Short Positions
Perpetual futures allow you to bet on the price of an asset (like SOL) without actually owning it.
Going Long
You believe the price of SOL will go UP. You lock in a buy price now to theoretically sell higher later. If the price rises above your entry point, your position becomes profitable.
Going Short
You believe the price of SOL will go DOWN. You lock in a sell price now to theoretically buy lower later. If the price falls below your entry point, your position becomes profitable.
Example Trade
- You open a 10 SOL Long at an entry price of $150.
- The total size of your position is $1,500.
- Later, the price of SOL pumps to $160.
- Your position is now worth $1,600.
- You close the trade and instantly realize a pure profit of $100!