> ## Documentation Index
> Fetch the complete documentation index at: https://docs.entry.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# Long and short positions

A **long** position means you expect the price to go up. A **short** position means you expect the price to go down. These are the two basic directions of a trade. In Entry Finance, you choose direction directly in the trading panel with the **Long** and **Short** controls described in [Open positions and orders](/using-the-terminal/open-positions-and-orders).

# Long position

When you go long, you benefit from rising prices.

This is the more intuitive trade for beginners:

* buy lower
* sell higher

If the market goes up after you enter, your position makes money. If it goes down, your position loses money.

## Simple long example

You open a long on ETH at `2,000 USDC`.

* If ETH rises to `2,100`, the position is in profit
* If ETH falls to `1,900`, the position is in loss

# Short position

When you go short, you benefit from falling prices. Shorting is useful when you think the market may drop, or when you want to protect another position.

## Simple short example

You open a short on ETH at `2,000 USDC`.

* If ETH falls to `1,900`, the position is in profit
* If ETH rises to `2,100`, the position is in loss

# Why this matters

Understanding long and short positions helps you read the market more clearly.

You do not have to think only in terms of "buying a coin." In derivative markets, you can choose a direction:

* bullish view -> long
* bearish view -> short

This gives you more ways to react to market conditions.

# Important beginner takeaway

Being correct about direction is the core of trading. Before thinking about leverage or advanced order types, ask one simple question:

`Do I think price is more likely to go up or down from here?`

Once you understand that, the next step is learning how [Margin explained](/trading-basics/margin-explained) and [Leverage explained](/trading-basics/leverage-explained) affect the size and risk of that idea.