Understand what "long" and "short" are in one picture Surprisingly, a brother asked me this basic question about the principles of short selling and long selling. I have specially created this chart to facilitate everyone's understanding. 1、 Short and Short Short: It means feeling that the market situation will fall. Short selling: It is the act of selling after feeling that the market will fall. Short selling is not possible in the spot market, but it can be achieved through leveraged trading in futures or contracts. Short position: Investors feel that although the current price of the currency is quite high, they are not optimistic about the future of the currency market and believe that the price will fall. So they sell their coins at the current price and buy them back when the price really drops, which can also earn a profit from the price difference. This kind of selling before buying trading behavior is a bearish operation. For example, if the current price of a coin is ten yuan, do you think its price will decline in the future. But you only have three or two yuan on hand, not enough to buy one coin. At this point, you can mortgage the two yuan in your hand and borrow a coin from a third party, and these two yuan are the margin. After borrowing the coin, immediately sell it on the market and you will have ten yuan in cash in your hand. However, these ten yuan in cash cannot be withdrawn directly because you have not yet returned the borrowed coins to a third party, such as the exchange. When the price of the coin really drops, for example, to five yuan per coin, you can use five yuan from the ten yuan cash in your hand to buy a coin and repay the third party who lent you the coin before. After repayment, everyone is settled, and the remaining five yuan is your profit (excluding third-party interest). This is the process of short selling for profit. But if the coin price does not fall as you expected, but instead rises, your margin will suffer losses. Once the loss exceeds the range that the margin can bear, it is called a liquidation, and the principal may be completely lost. 2、 Watch long and do long Being bullish: It means thinking that the market situation will rise. Going long: In the spot market, as long as you buy, you are going long. Buying at a low price, then selling at a high price after the price rises, and making money from the price difference, all belong to long behavior. Long position: refers to people who are optimistic about the cryptocurrency market and believe that the price will rise. They buy a certain amount of cryptocurrency at the current price, wait for the price to rise, and then sell it at a high price to earn the difference in price. This kind of buying and selling trading behavior is a long position operation. for instance: SOL， The current price is 140U. You were very optimistic about this coin, so you spent 140U to buy it. Later, the price of this SOL rose to 280U, and you sold it and earned 140U. This process is called multiple. In fact, both bulls and bears do not specifically refer to a single person or institution, but rather a group of people with similar ideas and market expectations. The above is a detailed explanation of long, short, and long short positions.