How to Go Long and Short on Binance Futures?

Going long and going short are the two basic directions in futures trading. Long means betting on a price increase; short means betting on a decrease. This article shows you exactly how to do both on Binance.

Prerequisites

Before you start, you'll need to:

1. Register and complete identity verification through the Binance official site
2. Download the APK or use the web version
3. Enable futures trading (requires passing a simple quiz)
4. Transfer funds from your spot wallet to your futures wallet

How to Go Long (Step by Step)

Going long means you're bullish -- you believe the price will rise. You buy the contract first and sell it later for a profit.

1. Go to the "Futures" trading page and select a trading pair (e.g., BTCUSDT Perpetual)
2. Adjust the leverage multiplier on the right side (beginners should start with 3-5x)
3. Choose the margin mode (Isolated or Cross)
4. On the order panel, select "Buy/Long"
5. Choose the order type (market or limit)
6. Enter the amount or quantity
7. Click "Buy/Long" to confirm

Once filled, if BTC's price rises, your position is in profit. You can click "Close Position" anytime to end the trade.

How to Go Short (Step by Step)

Going short means you're bearish -- you believe the price will fall. You sell the contract first and buy it back later for a profit.

1. Go to the futures trading page and select a trading pair
2. Adjust the leverage multiplier
3. Choose the margin mode
4. On the order panel, select "Sell/Short"
5. Choose the order type
6. Enter the amount or quantity
7. Click "Sell/Short" to confirm

Once filled, if BTC's price drops, your position is in profit. You can close the position at any time.

A Long Position Example

• You have 1,000 USDT and use 10x leverage to go long on BTC
• Position notional value: 10,000 USDT
• BTC rises from 65,000 to 67,600 (up 4%)
• Profit: 10,000 x 4% = 400 USDT
• Return on investment: 400 / 1,000 = 40%

A Short Position Example

• You have 1,000 USDT and use 10x leverage to go short on ETH
• Position notional value: 10,000 USDT
• ETH drops from 3,500 to 3,325 (down 5%)
• Profit: 10,000 x 5% = 500 USDT
• Return on investment: 500 / 1,000 = 50%

Ways to Close a Position

• Manual close: Click the "Close Position" button in your position list
• Take profit close: Set a target price for automatic closure to lock in profits
• Stop-loss close: Set a stop-loss price for automatic closure to limit losses
• Forced liquidation: When losses reach the liquidation threshold, the system automatically closes your position (liquidation)

Important Notes

1. Always set a stop-loss before opening a position -- never trade without one
2. Don't go both long and short on the same trading pair simultaneously (unless you really know what you're doing)
3. Beginners should practice with small amounts first, and only increase position sizes after getting comfortable with the process
4. When you're in profit, don't get greedy -- close when it's time to close