Going long and going short in contract trading are two basic ways for investors to gain profits through price prediction. Understanding and mastering these two ways is the basis for contract trading. The following is a detailed explanation of going long and going short in contract trading.
1. Contract trading : Contract trading refers to investors obtaining profits from the price fluctuations of digital assets by buying and selling contracts, rather than directly buying and selling physical assets. Common types of contract trading include perpetual contracts and delivery contracts.
2. Going long : Going long means that investors predict that the price of an asset will rise, so they buy contracts and wait for the price to rise before selling them to earn the difference.
3. Short selling : Short selling means that investors predict that the price of an asset will fall, so they sell the contract and wait for the price to fall before buying it back to earn the difference.