Long and Short in Trading, Explained Simply

Going long means buying an asset to sell it higher. Going short means selling a borrowed asset now and buying it back cheaper later; on crypto exchanges this is done with futures, so no borrowing is needed.

A short's potential loss is unlimited because the price can rise without limit. That makes shorts vulnerable to sharp jumps up — short squeezes.

The long/short ratio on exchanges shows which way the crowd leans. A heavy tilt to one side often warns of a move the other way.

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