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TRADING TOOLS

Trade both sides
of the market.

Go long when you expect a market to rise. Go short when you expect it to fall. Understand how each position works before you commit capital.

Try the demo account Open an account
  • Long and short positions
  • Leverage explained
  • Virtual funds to practise
LongPrice +2.84%

You expect the price to rise

ShortPrice −2.84%

You expect the price to fall

Same market. Two directions.Leverage can magnify losses as well as gains.

Going long

You buy because you expect the price to rise. The position gains value as the market moves up, and loses value if it moves down.

  • Profit when the market rises
  • Loss when the market falls
  • The more familiar direction for new traders

Going short

You sell because you expect the price to fall. The position gains value as the market drops, and loses value if it moves up.

  • Profit when the market falls
  • Loss when the market rises
  • Useful when you want exposure in either direction
WORKED EXAMPLES

Two trades, step by step.

Position size, margin and the closing price decide the result. These examples use illustrative numbers only.

Example · Long

Buying Ethereum

Entry price
$314.70
Position size
200 ETH
Position value
$62,940.00
Margin at 1%
$629.40
Exit price
$354.20
Difference
$39.50
Result$7,900 profit
Example · Short

Selling Bitcoin

Entry price
$7,400.00
Position size
10 BTC
Position value
$74,000.00
Margin at 1%
$740.00
Exit price
$7,354.00
Difference
$46.00
Result$460 profit
THE MATHS

How a long or short result is calculated.

Multiply the size of your position by the difference in price between opening and closing it. Profit or loss is realised when the position is closed. With a short position, the opening price is subtracted from the closing price the other way around.

  • Long: (close − open) × position size
  • Short: (open − close) × position size
  • Leverage increases both the position and the risk
Long position

(close − open) × size

Short position

(open − close) × size

Leverage changes how much margin you set aside, not the size of the price move.
COMMON QUESTIONS

Long and short, explained

What does going short actually mean?

A short position is designed to gain value when the price of an asset falls. Rather than buying first and selling later, you open the position by selling and close it by buying back.

Can I lose more than I put in?

With leveraged trading, losses can exceed your initial margin. Positions can be closed automatically when your available margin runs out. Never trade with money you cannot afford to lose.

What is leverage?

Leverage lets you open a position larger than the margin you set aside. It magnifies gains and losses in equal measure, so a small price move can have a large effect on your balance.

Can I practise shorting before using real money?

Yes. The demo account uses virtual funds and the same order types, so you can see how long and short positions behave without risking capital.

Learn the mechanics with virtual funds.

Open the demo account and place long and short trades before you use real money.

Start demo trading