8. Choosing Your Market Sentiment
Go Long or Short.
Longing a perp entails buying a perp with the expectation of it increasing in price. If the perp’s underlying asset increases in price, so too does the perp, as the price of the perp closely tracks the price of its underlying asset.
If you anticipated $SOL increasing in price and wanted to profit from price action to the upside, you would go long (buy) the $SOL perp. If the price of $SOL increases after your position is established, so too does the value of your position.
Shorting a perp entails selling a perp with the expectation of it decreasing in price. If the perp’s underlying asset decreases in price, so too does the price of the perp, as the price of the perp closely tracks the price of its underlying asset.
If you anticipated $SOL decreasing in price and wanted to profit from price action to the downside, you would go short (sell) the $SOL perp. If the price of $SOL decreases after your position is established, the value of your position increases.
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