- Long profits when the price rises, short profits when it falls — the P&L formula is the same with the sign flipped.
- You don't need to own an asset to go short on TRADE818.
- For a short, take profit sits below the entry and stop loss above it.
- Fast rallies hurt shorts quickly, so position size and stops matter even more.
On a regular exchange you can only make money when the price goes up: you buy, wait and sell higher. Leveraged trading on TRADE818 lets you take either side. Going long means you profit if the price rises; going short means you profit if it falls. Both are opened from the same order ticket with the Long and Short buttons, and you don't need to own the asset to go short.
Same formula, opposite sign
The P&L of a position is the position size multiplied by the price change. For a long the change counts as it is; for a short it counts with the opposite sign. Everything else — margin, fees, liquidation — works the same way on both sides.
When traders go short
- They expect a market to fall — after bad news, a failed breakout or a broken trend.
- They want to hedge: a short on one market can offset losses on a long in a related one.
- They trade ranges: buying near the bottom of a range and shorting near the top.
Where the risk sits on each side
A long is liquidated if the price falls far enough; a short is liquidated if it rises far enough. With the same leverage the distance is the same in percent. The difference is in how markets tend to move: prices can climb steadily but they often spike up very fast during short squeezes, when many short positions are forced to close at once.
- For a short, take profit sits below your entry and stop loss above it. The TP/SL window checks the direction for you.
- A short's liquidation price is above the entry — keep your stop well below it.
- News and earnings releases can move stocks several percent at the open; consider smaller size or lower leverage around them.
A worked example
- 1BTC trades at $85,000 and keeps failing at $86,000. You expect a move back to $83,300.
- 2You open a short with $300 margin at 10× — a $3,000 position.
- 3You set take profit at $83,300 (−2%) and stop loss at $86,700 (+2%).
- 4If the target is hit, P&L ≈ +$60 before fees; if the stop is hit, ≈ −$60. Fees are about $1.80 on each side.
FAQ
Do I pay anything extra to go short?
No. Shorts and longs pay the same trading fee on open and close.
Can I have a long and a short on the same market?
Yes, they are separate positions with their own margin, P&L and liquidation price.
This article is for educational purposes and is not investment advice. Trading with leverage carries a high level of risk and you can lose all invested capital.