“Long”, it’s when you buy at a low price and then sell at a higher price. In this way, you can earn a profit from the price difference.
Let's learn how to long on margin trading.
It's when you buy at a low price and then sell at a higher price.
In this way, you can earn a profit from the price difference.
Let's suppose the BTC price is currently at 10,000 USDT and you think that it will be rise in the future.
You can "Long" and select "Cross Margin" or "Isolated Margin" mode to purchase BTC at 10,000 USDT.
"Isolated Margin" can use higher leverage and get higher profits.
So let's try "Isolated Margin" as an example.
Transfer 10,000 USDT as collateral from your spot account to your BTC/USDT isolated margin account.
Select [Limit] order.
Click on [Borrow] and input 10,000.
Scroll to 100% and click on [Margin Buy BTC].
Once the order is completed, you would have borrowed 90,000 USDT and bought 10BTC at the price of 10,000 USDT.
■"How to earn a profit?"
After several days, if the BTC price goes up to 11,000 USDT, you will use the " Repay" function and sell 10 BTC at 11,000 USDT each.
Then, the initially borrowed 9,000 USDT will be refunded automatically.
If the handling fees and interest are ignored, in this case, you would have 20,000 USDT in your isolated margin account and earned 10,000 USDT which is a 100% profit
■How to manage risk?
The market may go in the opposite direction.
It is recommended to use an OCO (One-Cancels-the-Order) order to manage the risk.
Input price: 11,000
Amount: 10 BTC
Click on [Sell BTC].
If the BTC price drops to 9,905, a "sell" stop limit order at 9,900 will be placed.
And the limit order will be canceled.
If the BTC price goes up to 11,000, a "sell" auto-pay limit order at 11,000 will be placed and the stop limit order will be canceled.
Here is how you can long on margin trading and manage your risk using the OCO order.