Long vs short in futures: what is the difference?
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Going long means you profit if the price rises. Going short means you profit if the price falls. On Xoibit futures you go long with Buy/Long and short with Sell/Short.
How does a long position make money?
You open a long at one price and close it higher. PnL = (exit price - entry price) x size. If you go long 1 BTC at 60,000 USDT and close at 61,000 USDT, your PnL is +1,000 USDT before fees.
How does a short position make money?
You open a short at one price and close it lower. PnL = (entry price - exit price) x size. If you go short 1 BTC at 60,000 USDT and close at 59,000 USDT, your PnL is +1,000 USDT before fees.
With futures you do not need to own the coin to go short: the position is a contract settled in USDT.
Which is riskier?
Both use leverage and both can be liquidated. For a long, the liquidation price is below your entry; for a short, it is above. The price of a coin can rise without limit, so a short with no stop loss can lose its margin quickly in a sharp rally, the same way a long can in a sharp drop.
What is unrealized and realized PnL?
- Unrealized PnL is the profit or loss of an open position, calculated with the mark price.
- Realized PnL is what you lock in when you close all or part of the position. It is recorded in Transactions.
These numbers are only examples. Fees and funding fees also affect your final result. Use the futures calculator to check your PnL and ROI before you trade.
Can I switch from long to short?
Yes. Close your long, or place a sell order bigger than your long to close it and open a short with the rest. You cannot hold both on the same pair at once.
常问问题
Do I need to own BTC to short it?
No. Futures are contracts settled in USDT, so you only need USDT margin in your Futures wallet.
What does ROI mean on my position?
ROI is your unrealized PnL as a percentage of the position's initial margin.