Starting crypto trading, the two main things I need to understand are Long and Short. Today, I want to share what a long order is and how it works because this is truly the foundation for any trader.

First, we need to know what a Position is. Simply put, a position is the state of holding a certain cryptocurrency under specific market conditions. It directly relates to price fluctuations. In crypto, positions are divided into two types: buying (long position) and selling (short position).

So, what is a long order? Basically, it’s when you buy a crypto pair with the hope of selling it later at a higher price. You make money from the market’s price increase. When you forecast that the price will rise soon, the first step is to buy. But you don’t always get a good price when buying, so most traders split their funds to buy at different price levels. Then, when the price actually goes up, you take profit from those long positions and realize gains.

Conversely, Short is when you short-sell a currency with the prediction that its price will decrease. At this point, you make money from the decline. You place sell orders on currency pairs you believe will drop in price, but in reality, you don’t own them. To do this, you need to use leverage and margin accounts. When the price drops, you close the short position and take the profit.

The interesting part here is market psychology. If everyone opens long orders at the same time, meaning they are all buying based on the same forecast, then a large volume of longs can cause the price to spike rapidly in a very short time. Similarly, if the crowd is shorting, the price will plummet uncontrollably.

The important thing is that you must understand what a long order is, how it affects the market, and always set a stop loss for each trade. Opening a trade (buy or sell) is the start, but it ends when you close the position. Until you close the trade, profit or loss is only on paper.

Thus, understanding what a long order is, what a short order is, and investor psychology is the first step to avoid unnecessary losses in trading. I hope this sharing helps you better grasp these basic concepts. If you find it useful, feel free to share with your friends to learn together!