Going long and going short are the two core operations in futures trading. Going long means betting on a price increase; going short means betting on a price decrease — simple enough in concept, but many people still aren't sure how to actually execute these on Binance. Today, let's walk through the complete process for both. You can trade through the futures page on Binance Official, or use the Binance Official APP to trade on your phone. iPhone users can refer to the iOS Installation Guide for installation.
The Basic Principles of Long and Short
Going Long
Going long means you believe the price will rise. You buy a contract at a low price and sell it (close the position) when the price goes up, pocketing the difference as profit.
For example, if BTC is currently at 60,000 USDT and you open a long position, then close it when the price reaches 65,000 USDT, you profit from that 5,000 USDT increase (your actual profit is calculated based on the price difference multiplied by your position size divided by the entry price).
Going Short
Going short means you believe the price will fall. You sell a contract at a high price and buy it back (close the position) when the price drops, again earning the difference.
Many beginners wonder: "I don't own this coin — how can I sell it?" In the futures market, shorting doesn't require you to actually own the asset. You're simply entering into a contract with the market, agreeing to sell at the current price and buy back at a future price.
Step-by-Step Guide to Going Long
Step 1: Navigate to the Futures Trading Page
Log into Binance, find "Futures" in the top navigation bar, and click to enter "USDT-M Futures."
Step 2: Select a Trading Pair
In the trading pair list on the left, search for the coin you want to trade — for example, type "BTC" and select "BTCUSDT Perpetual."
Step 3: Set Leverage and Margin Mode
At the top of the order panel, set your leverage (3x to 5x recommended for beginners) and margin mode (isolated recommended for beginners).
Step 4: Select Long
The order panel is divided into a green "Buy/Long" side and a red "Sell/Short" side. To go long, click the green side.
Step 5: Choose Order Type and Place Your Order
Select either a limit order or market order. For immediate execution, choose market order, enter the amount, and click "Buy/Long." If you want to wait for a better price, choose limit order and enter your desired price and quantity.
Step 6: Set Take-Profit and Stop-Loss
Once your position is open, immediately set your take-profit and stop-loss prices in the position details. For a long position, set the stop-loss below your entry price and the take-profit above it.
Step-by-Step Guide to Going Short
Going short follows almost the exact same process as going long — the only difference is in Step 4, where you select the red "Sell/Short" button.
Navigate to futures page, select trading pair, set leverage and margin mode, click "Sell/Short," choose order type and place order, then set TP/SL.
When shorting, note that the TP/SL directions are reversed: the stop-loss goes above your entry price (because a price increase is unfavorable for shorts), and the take-profit goes below your entry price (because shorts profit when prices fall).
When to Go Long vs When to Go Short
This is the hardest question with no definitive answer. But here are some basic frameworks for thinking about it:
Trend Following
In an uptrend, primarily go long. In a downtrend, primarily go short. How do you identify the trend? The simplest method is to look at moving averages — if the price is above the moving average, it's an uptrend; below, it's a downtrend.
Key Level Trading
Go long near support levels; go short near resistance levels. Support is a price level where the price has bounced upward multiple times, indicating strong buying pressure. Resistance is a level where the price has pulled back multiple times, indicating heavy selling pressure.
News-Driven Trading
Consider going long after major bullish news (like a country approving a Bitcoin ETF), and consider going short after major bearish news (like a major exchange collapse). But be aware of the "buy the rumor, sell the news" phenomenon — sometimes prices actually drop after bullish news breaks.
Risk Reminders for Long and Short Positions
Going short carries a unique theoretical risk: when going long, your maximum loss is limited to your margin (the price can only drop to zero), while short losses are theoretically unlimited (because there's no ceiling on how high prices can go). In practice, leverage and liquidation mechanisms mean you won't actually lose infinitely, but shorting does require more careful stop-loss placement.
Another reminder: don't go both long and short on the same trading pair simultaneously (so-called "hedging") as a beginner. This approach easily leads to confusion, with both sides incurring fees. If you can't determine the direction, the best move is to stay out and wait for a clear signal before entering.
FAQ
Q: Are the fees the same for going long and short?
A: Yes. Whether you go long or short, the fee rates are identical — 0.02% for Makers and 0.05% for Takers. However, note that the funding rate payment direction may differ depending on your position side.
Q: Can I hold both long and short positions simultaneously?
A: Yes, Binance offers a "Hedge Mode" that allows you to hold both long and short positions on the same trading pair at the same time. However, this isn't recommended for beginners as it can be confusing to manage.
Q: Can going short result in bigger losses?
A: With leverage and liquidation mechanisms in place, the maximum loss for both long and short positions is your margin (in isolated mode). Binance won't let you lose more than your margin. However, during a sudden price surge, short positions can be liquidated very quickly, so always make sure your stop-loss is properly set.