What does long and short selling mean in currency speculation?

Long and short positions in currency speculation: Long: Predict the price to rise, buy cryptocurrency, and sell when the price rises to make a profit. Short selling: Predict that the price will fall, borrow cryptocurrency, sell to obtain initial cash, and repurchase the borrowed cryptocurrency after the price falls. The profit comes from the difference between the selling and repurchasing prices.

Going long and shorting in currency speculation

In the cryptocurrency market, going long is Refers to predicting that the price will rise and making a buying operation. Short selling On the contrary, it means predicting that the price will fall and performing a selling operation.

How to go long

• Buying an asset: Longs buy a cryptocurrency that they believe will increase in price.
• Waiting for the Price to Increase: They hold cryptocurrencies in the hope that their price will increase over time.
• Sell for Profit: When the price reaches higher expectations, they sell the cryptocurrency and make a profit.

How short selling works

• Borrowing assets: Short sellers borrow assets from exchanges or other parties they believe the price will fall of cryptocurrency.
• Sell Assets: They immediately sell the borrowed cryptocurrency and receive initial cash.
• Buy Back Assets: When the price drops to the level they expected, they buy back the same amount of cryptocurrency they sold previously.
• Return Borrowed Money: They return the borrowed cryptocurrency with a lower buyback price and return interest.
• Source of profit: Profit comes from the difference between the selling price and the repurchase price.

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