{"version":1,"id":"long-position","title":"Long Position","summary":"Long position is a glossary term that denotes a trading stance in which a trader buys or takes a derivative bet expecting an asset's price to rise, profiting from price appreciation and risking loss (and possible liquidation when leveraged).","content":"**A long position** is a trading stance in which a trader bets that an asset's price will rise, buying and holding with the expectation of selling later at a higher price for a profit. In [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) markets, going long is one of the two fundamental directional bets a trader can take, the other being a short position, which profits from falling prices.[\\[1\\]](#cite-id-3mtnsp3xkl) \n\nThe stance is also referred to as _\"going long,\"_ and it can be expressed either by owning an asset outright or by using derivative contracts that track the asset's price.[\\[2\\]](#cite-id-k13gtwomun)​\n\nAt its simplest, buying and holding [Bitcoin](https://iq.wiki/wiki/bitcoin) or [Ethereum](https://iq.wiki/wiki/ethereum) in a self-custody wallet is, in the broadest sense, a long position, because the holder profits directly from any appreciation in the asset's price.[\\[1\\]](#cite-id-3mtnsp3xkl)​\n\n## How It Works\n\nThe most direct way to open a long position is to buy an asset and hold it, owning the asset outright and profiting from price appreciation.[\\[1\\]](#cite-id-3mtnsp3xkl) This can be illustrated with a concrete example: buying [Bitcoin](https://iq.wiki/wiki/bitcoin) at $80,000 and selling it at $100,000 produces a profit from the long position, whereas if the price falls instead, the trader incurs a loss.[\\[1\\]](#cite-id-3mtnsp3xkl)​\n\nA long position can also be opened through derivative contracts, such as perpetual futures, without owning the underlying [cryptocurrency](https://iq.wiki/wiki/cryptocurrency). In this case the trader holds a contract whose value tracks the asset's price, gaining upward price exposure rather than possession of the coin itself.[\\[2\\]](#cite-id-k13gtwomun)​[\\[3\\]](#cite-id-zuzp5sifoz) \n\nThe mechanics of a leveraged or contract-based long follow a set sequence: the trader opens the position at the current market price; if the price rises, the position gains value proportionally, multiplied by any leverage applied; if the price falls, the position loses value; and the trader can close the position at any time to realize the accumulated profit or loss. Closing a long position is done by selling the equivalent contract size.[\\[2\\]](#cite-id-k13gtwomun)​[\\[3\\]](#cite-id-zuzp5sifoz)​\n\nThe key distinction between the two approaches is exposure versus ownership: a long futures position gives price exposure without owning the underlying asset, while a spot purchase means the trader actually holds the asset.[\\[3\\]](#cite-id-zuzp5sifoz)​\n\n## Leverage and Liquidation\n\nMore advanced traders use derivatives to go long with leverage. On platforms offering perpetual futures or margin trading, a trader can open a long position larger than their actual capital by borrowing funds, controlling a bigger position size than their margin alone would allow.[\\[1\\]](#cite-id-3mtnsp3xkl)​[\\[3\\]](#cite-id-zuzp5sifoz) \n\nLeverage magnifies both outcomes. A 1% price rise on a 10x leveraged long moves the trader's profit and loss by roughly 10%.[\\[3\\]](#cite-id-zuzp5sifoz) [Trust Wallet](https://iq.wiki/wiki/trust-wallet) illustrates the full profit-and-loss curve with a 10x long position on [Bitcoin](https://iq.wiki/wiki/bitcoin) at an entry price of $60,000, using $1,000 of margin for $10,000 of position size. At a Bitcoin price of $66,000 the position shows a profit of $1,000, a 100% return on margin; at $63,000 it shows $500, a 50% return; at the $60,000 entry it is flat at $0; at $57,000 it shows a loss of $500, or −50%; and at $54,000 it shows a loss of $1,000, a −100% return that wipes out the margin entirely and triggers [liquidation](https://iq.wiki/wiki/liquidation).[\\[2\\]](#cite-id-k13gtwomun)​\n\nLiquidation is the central risk of a leveraged long. If the price moves against the position far enough that losses exceed the available margin, the position is closed automatically and the trader's collateral is lost.[\\[1\\]](#cite-id-3mtnsp3xkl)​[\\[2\\]](#cite-id-k13gtwomun) Higher leverage means a smaller adverse price move can trigger liquidation, so choosing lower leverage reduces liquidation risk for the same entry price. Leverage is optional but common, and understanding the entry price, leverage, and liquidation price matters before opening a position.[\\[3\\]](#cite-id-zuzp5sifoz) In volatile crypto markets, both long and short positions carry significant risk, and leveraged positions on either side can be wiped out quickly by sharp price swings.[\\[1\\]](#cite-id-3mtnsp3xkl)​\n\nIn perpetual futures, funding payments periodically pass between long and short traders to keep the contract price aligned with the underlying market. In a typical [bull market](https://iq.wiki/wiki/bull-market), longs pay funding and shorts receive it, an ongoing cost that a long trader bears while holding the position.[\\[2\\]](#cite-id-k13gtwomun)​\n\n## Long vs Short\n\nA long position and a short position are opposite directional bets. \n\nA long position profits when prices rise and loses when they fall, making it a bullish stance; a short position profits when prices fall and loses when they rise, making it a bearish stance.[\\[2\\]](#cite-id-k13gtwomun)​[\\[1\\]](#cite-id-3mtnsp3xkl) \n\nTraders who believe an asset is overvalued will short it, while those who see upside will go long.[\\[1\\]](#cite-id-3mtnsp3xkl) Accordingly, a trader should open a long position when the market view is bullish rather than bearish or neutral, expecting the underlying asset's price to rise.[\\[3\\]](#cite-id-zuzp5sifoz)​\n","categories":[{"id":"glossary","title":"glossary"}],"tags":[],"images":[{"id":"QmSkrwGAmFpcmxWxfsWjZ2agkJiSweC4sM6gUg3rn4r3de","type":"image/jpeg, image/png"}],"media":[],"metadata":[{"id":"references","value":"[{\"id\":\"3mtnsp3xkl\",\"url\":\"https://www.ledger.com/academy/glossary/long-position\",\"description\":\"Ledger Academy definition of long position\",\"timestamp\":1790680075864},{\"id\":\"k13gtwomun\",\"url\":\"https://trustwallet.com/glossary/long-position\",\"description\":\"Trust Wallet glossary on going long\",\"timestamp\":1790680075864},{\"id\":\"zuzp5sifoz\",\"url\":\"https://pluang.com/en/faq/crypto-futures/crypto-futures-transaction/g-pengertian-long-position\",\"description\":\"Pluang on long positions without owning the asset\",\"timestamp\":1790680075864}]"},{"id":"main-image-origin","value":"{\"imageId\":\"QmSkrwGAmFpcmxWxfsWjZ2agkJiSweC4sM6gUg3rn4r3de\",\"originalId\":\"QmSkrwGAmFpcmxWxfsWjZ2agkJiSweC4sM6gUg3rn4r3de\"}"},{"id":"commit-message","value":"Add wiki page for Long Position"}],"events":[{"type":"DEFAULT","title":"Ledger Academy definition and update","date":"2026-05-01","description":"Ledger Academy published and updated a glossary article defining 'Long Position' as a bet that an asset's price will rise, describing spot and leveraged derivative implementations and liquidation risk.","link":"https://www.ledger.com/academy/glossary/long-position","multiDateStart":null,"multiDateEnd":null,"id":"530cdef7-4e2f-4ec0-83ed-d1d1dee65e72"}],"linkedWikis":{"founders":[],"blockchains":[],"speakers":[]},"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"language":"en","operator":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"}}