What Is a Long Position?
A long position (or "going long") is a trade in which the trader profits when the price of an asset rises. The trader either buys the asset outright (in spot trading) or uses a
derivative contract like a perpetual future to gain upward price exposure without owning the underlying asset.
Going long is the most intuitive form of trading — buy low, sell high. In crypto perps, opening a long position means betting that the contract price will increase before the trader
closes the position.
How Does a Long Position Work?
The trader opens a long position at the current market price.
If the price rises, the position gains value proportionally (multiplied by leverage, if applicable).
If the price falls, the position loses value.
The trader can close the position at any time to realize profits or losses.
In leveraged trading, if losses exceed the margin, the position is liquidated.
Example: 10x Long Position on BTC
Entry price: $60,000
Margin: $1,000
Leverage: 10x
Position size: $10,000
| BTC Price | Position P&L | % Return on Margin |
|---|---|---|
| $66,000 | +$1,000 | +100% |
| $63,000 | +$500 | +50% |
| $60,000 | $0 | 0% |
| $57,000 | −$500 | −50% |
| $54,000 | −$1,000 | −100% (liquidation) |
Long vs Short Position
| Feature | Long Position | Short Position |
|---|---|---|
| Profits when price | Rises | Falls |
| Losses when price | Falls | Rises |
| Direction | Bullish | Bearish |
| Funding rate (typical bull market) | Pays | Receives |
Common Reasons to Open a Long Position
Bullish technical setup — chart patterns or indicators signal upward momentum
Fundamental catalyst — upcoming upgrade, ETF approval, or macro event
Accumulation strategy — building exposure to an asset at favorable prices
Hedging a short portfolio — offsetting bearish positions elsewhere
Long Position and Trust Wallet
Trust Wallet users can open long positions on 100+ perp markets via Hyperliquid and Aster DEX, with leverage up to 200x on Aster and 40x on Hyperliquid. All positions remain in
self-custody — Trust Wallet never takes custody of user funds.
