A long position is a trading position in which the trader benefits when the underlying asset price rises and loses when the price falls, all else being equal.

In spot trading, buying an asset generally creates long exposure to its price. In derivatives, a long position can be created through a contract without directly owning the underlying asset.

Example

If a trader opens a BTC long position at $60,000 and closes it at $63,000, the price change is +5%. Without leverage, this corresponds to approximately a 5% position return before fees and other costs.

With leverage, the percentage result relative to the trader’s own capital can be much larger, but so can the risk of loss and liquidation.