Glossary
What does going long or short mean?
Also called: going long, going short, long position, short position, short selling
Updated Ninja Terminal team
Definition
Going long means opening a position that gains when the price rises. Going short means opening a position that gains when the price falls. On perpetual futures you can do both without owning the coin, because you trade a contract. The risk is higher on leveraged trades, and a short has no price ceiling.
Spot markets let you profit from a rise only, since you must hold the coin. Derivatives let you take either side.
How does each side work?
| Long | Short | |
|---|---|---|
| Opens with | A buy | A sell |
| Gains when price | Rises | Falls |
| Closes with | A sell | A buy |
| Liquidation price | Below entry | Above entry |
Example: you go long 0.5 BTC at 60,000. At 61,000 the unrealized PnL is +500 USD. If you short 0.5 BTC at 60,000 and price rises to 61,000, it is -500 USD.
How does funding affect each side?
With a positive funding rate, longs pay shorts. With a negative rate, shorts pay longs. Funding is a running cost or income on top of price moves.
Can you hold both?
In one-way mode, opposite trades net into one position. In hedge mode, you can hold a long and a short in the same contract at once.
What are the risks?
Both sides can be liquidated when leverage is high. A long loses at most its full position value, because price cannot fall below zero. A short has no upper price limit, so risk controls such as a stop-loss matter.
Where does it appear in Ninja Terminal?
Quick Entry uses L for long and S for short. For example, btc l 100k opens a long of 100,000 USD in BTC, and btc s 50k perp opens a short in the perpetual market. Press Enter to place it after you check the live preview.
Frequently asked questions
Do I need to own the coin to short it?
Not on perpetual futures. You trade a contract, so you can sell it without holding the coin.
Is shorting riskier than going long?
A short's loss can grow without a fixed limit as price rises. A long's loss is limited by price falling to zero. Leverage adds risk to both.