How to Open Long and Short Positions (Step-by-Step with Diagrams)
A visual walkthrough of going long and short on perpetual futures: order types, entries, take-profit and stop-loss placement.
Long vs. short in one picture
Going long means you profit if the price rises. Going short means you profit if the price falls. In both cases you define an entry, a take-profit (TP) where you lock in gains, and a stop-loss (SL) where you accept you were wrong.
Long position — price over time
You buy at the entry. If the price rises to the take-profit you close in profit; if it falls to the stop-loss you exit with a small, planned loss.
Profit zone: price moves up from entry
Loss zone: price moves down from entry
Step-by-step: opening a position
1
Transfer funds to your futures wallet
Move USDT (or another margin asset) from your spot wallet to the USDⓈ-M futures wallet. Only transfer what you are prepared to risk.
2
Choose the market and margin mode
Select a pair such as BTCUSDT. Pick Isolated margin so that a losing trade can only use the margin assigned to it.
3
Set your leverage
Start at 2x–5x. Higher leverage does not change your risk if you size correctly, but it moves your liquidation price much closer to entry.
4
Pick an order type
Limit orders fill at your price or better and usually pay lower fees. Market orders fill immediately at the best available price.
5
Click Buy/Long or Sell/Short
Long if you expect the price to rise, short if you expect it to fall. Enter the size based on your risk, not your gut.
6
Attach TP and SL immediately
Set a stop-loss at the level that invalidates your idea, and a take-profit at a realistic target — ideally at least 2x the distance to your stop.
Worked examples
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