For Customers Log in
Contact Us

Long position Meaning

This formal term refers to the actual "entry" in a trader’s portfolio. A long position has a "Cost Basis" (the price you paid) and an "Unrealized Profit/Loss" based on the current market price.

In derivative markets like "Futures" or "Perpetuals," you can hold a long position without actually owning the underlying asset. You are simply entering into a contract with another party (the "Short") where you agree to receive the difference if the price goes up, and pay the difference if the price goes down.

The "Total Long Interest" in a market is a key indicator of sentiment.

If everyone is in a long position, it can actually be a "contrarian" warning sign: if there are no more buyers left to push the price up, the only direction left is down, which can lead to a "Long Squeeze" as everyone tries to exit at the same time.

← Back to Glossary

Explore our services
Providing liquidity in the cryptocurrency market?
Authorize on our platform and do it smarter with FM Pulse.
pic

FM Marketplace

A reliable and high-performance crypto liquidity marketplace for institutions and businesses.

Learn more
pic

FM White Label

Launch your fully branded B2B crypto trading platform in under one week.

Learn more
pic

FM Liquidity Match

Crypto OTC-as-a-Service infrastructure for enhanced monetization and trade control.

Learn more

Scale your business, leave the hard work of your trading needs to us

Reduce your integration costs and operational risk across multiple access points with our platform

Get started