What is the difference between a Long and Short?

In trading, taking a long position means purchasing a cryptocurrency with the expectation that its price will increase. It reflects a bullish outlook where the trader anticipates a rise in market value.

Conversely, a short position involves selling a cryptocurrency that the trader does not currently own (usually borrowed) with the expectation of buying it back at a lower price. This is based on a bearish outlook, predicting a decline in prices.

Both strategies are essential for leveraging market movements to gain profits, especially within the perpetuals market.