Long Position
A trade betting on the price increase of a digital asset.
What is Long Position?
A long position in a Perp DEX is a trade where a trader buys a perpetual swap contract expecting the price of the underlying digital asset (e.g., ETH) to rise. For example, on Hyperliquid, a trader might open a 5x leveraged long position on BTC at $60,000, profiting if the price rises to $65,000, with gains amplified by leverage.
Long positions are settled in real-time based on the mark price, and traders pay or receive funding rates depending on market balance. If the market moves against the position, the trader risks liquidation unless they add more margin. Long positions are popular in bullish markets but require careful risk management due to volatility.
Related Terms
TVL (Lending)
Total value of digital assets locked in DeFi lending protocols for borrowing and lending activities.
APY (Lending)
The annualized percentage yield in DeFi lending, accounting for interest compounding.
Beacon Chain
The proof-of-stake consensus layer of Ethereum, coordinating validators since December 2020.
Data Sovereignty
Control over data ownership and usage by its creator or owner.
Buy Side
The portion of the order book listing aggregated buy orders at various price levels.
Bid-Ask Spread
The difference between the highest bid price and the lowest ask price in an order book, indicating market liquidity.