Long vs Short: Entries, Exits & Time‑in‑Trade (Forex + Crypto)

What you’ll be able to do after this lesson

• Explain what “go long” and “go short” mean in forex and crypto — and why forex is always long one currency & short the other.
• Use TradingView’s Long/Short Position tool to mark entry, stop loss, take profit, and risk‑to‑reward on any chart.
• Practice entries/exits using Paper Trading (risk‑free simulation).
• Decide time‑in‑trade (scalp/day/swing) aligned with sessions (forex) or 24/7 crypto behavior.
• Identify holding costs and risks: rollover/swap (forex) and funding + liquidation risk (crypto perps).
• Size positions so one trade risk stays small (e.g., ~1%) using a position size calculator.

Introduction

If Chapter 6 helped you understand leverage and margin, Chapter 7 focuses on direction (long/short), how to plan a trade visually, how long you should stay in a position, and what hidden costs appear when you hold trades overnight. We practice everything first using paper trading so you build skill without risking real money.

Key terms (quick reference)

• Long: profits when price goes up
• Short: profits when price goes down
• Stop Loss (SL): exit to limit losses
• Take Profit (TP): exit to lock gains
• R:R Ratio: potential loss vs potential gain
• Rollover/Swap: forex overnight interest cost/credit
• Funding Rate: periodic payment on crypto perpetuals
• Liquidation: forced closure when margin is too low