One of the biggest advantages of perpetual trading is that you can trade whether prices rise or fall.
This is done by opening either a Long position or a Short position.
What Is a Long Position?
A Long position means you expect the price of an asset to increase.
If the market price rises after you open your position, your trade becomes profitable.
If the price falls, your position loses value.
Example
You open a Long position on Bitcoin at $100,000.
If Bitcoin rises to $105,000, your position gains value.
If Bitcoin falls instead, your position loses value.
What Is a Short Position?
A Short position means you expect the price of an asset to decrease.
If the market price falls after you open your position, your trade becomes profitable.
If the price rises, your position loses value.
Example
You open a Short position on Bitcoin at $100,000.
If Bitcoin falls to $95,000, your position gains value.
If Bitcoin rises instead, your position loses value.
Choosing Between Long and Short
Your decision depends entirely on your market outlook.
Expect prices to rise → Open a Long position.
Expect prices to fall → Open a Short position.
Both position types use leverage, margin, funding, and liquidation in the same way.
Frequently Asked Questions
Can I change a Long position into a Short position?
No. You’ll need to close your existing position before opening a new position in the opposite direction.
Is Short trading more risky than Long trading?
Both Long and Short positions carry similar risks. The outcome depends on how the market moves relative to your position.
Can I have multiple positions?
Depending on the Bayse platform and supported markets, you may be able to hold multiple positions simultaneously.