Learn · Basics · 3 min read

Going Long vs Short

Going long means you buy expecting price to rise — you profit as it goes up. Going short means you sell first expecting price to fall — you profit as it goes down. In futures you can do both just as easily, which means you can make money in up and down markets.

Long positions

W

h

e

n

y

o

u

'

r

e

l

o

n

g

,

y

o

u

r

p

r

o

f

i

t

g

r

o

w

s

a

s

p

r

i

c

e

r

i

s

e

s

a

n

d

y

o

u

r

l

o

s

s

g

r

o

w

s

a

s

i

t

f

a

l

l

s

.

I

t

'

s

t

h

e

i

n

t

u

i

t

i

v

e

d

i

r

e

c

t

i

o

n

&

m

d

a

s

h

;

b

u

y

l

o

w

,

s

e

l

l

h

i

g

h

.

Short positions

W

h

e

n

y

o

u

'

r

e

s

h

o

r

t

,

i

t

'

s

r

e

v

e

r

s

e

d

:

y

o

u

p

r

o

f

i

t

a

s

p

r

i

c

e

f

a

l

l

s

.

I

n

f

u

t

u

r

e

s

t

h

e

r

e

'

s

n

o

b

o

r

r

o

w

i

n

g

h

a

s

s

l

e

&

m

d

a

s

h

;

g

o

i

n

g

s

h

o

r

t

i

s

a

s

s

i

m

p

l

e

a

s

c

l

i

c

k

i

n

g

s

e

l

l

.

T

h

i

s

i

s

a

b

i

g

a

d

v

a

n

t

a

g

e

o

v

e

r

o

n

l

y

b

e

i

n

g

a

b

l

e

t

o

b

u

y

.

Which direction to trade

F

o

l

l

o

w

t

h

e

t

r

e

n

d

a

n

d

s

t

r

u

c

t

u

r

e

.

I

n

a

d

o

w

n

t

r

e

n

d

,

s

h

o

r

t

s

w

i

t

h

t

h

e

t

r

e

n

d

a

r

e

h

i

g

h

e

r

-

p

r

o

b

a

b

i

l

i

t

y

t

h

a

n

f

i

g

h

t

i

n

g

i

t

w

i

t

h

l

o

n

g

s

.

L

e

t

<

a

h

r

e

f

=

"

w

h

a

t

-

i

s

-

m

a

r

k

e

t

-

s

t

r

u

c

t

u

r

e

.

h

t

m

l

"

>

m

a

r

k

e

t

s

t

r

u

c

t

u

r

e

<

/

a

>

g

u

i

d

e

y

o

u

r

b

i

a

s

.

See it live inside TradingTaco

I break this down live on NQ and ES every session — so you learn the timing, not just the theory.

Go Premium — $100/mo →

FAQ

Can you make money when the market goes down?

Yes — by going short. Futures make shorting simple, so down moves are just as tradable as up moves.

Is shorting riskier than going long?

Both carry risk. With proper stops and sizing, a short is managed the same way as a long.

Educational content only, not financial advice. Trading futures carries substantial risk of loss.