Buying or selling an instrument opens a trading position. While the position is open, its value changes with the instrument's price.
Long and short positions
A long position, or going long, means buying an asset because you expect its price to rise.
A short position, or going short, lets you profit from falling prices.
You can open short positions across all three markets: US stocks, crypto, and Goods+.
How to open and close a long position
To open a long position, place a buy order for an instrument. To close it, sell the instrument. See a step-by-step example in how to buy a single share.
How to open and close a short position
To open a short position on UTEX—Margin, place a sell order for a stock or cryptocurrency you do not own. To close the position, buy the instrument back.
For example, you open a short position of −2 ETH at $4,000, for a total trade value of $8,000. The price then falls to $3,500. You buy back 2 ETH for $7,000, closing the short position with a profit of $1,000.
How leverage works
Leverage is a multiplier that lets you open positions worth several times your balance. The funds you deposit serve as collateral, or margin.
Leverage and limits vary by market:
For example, you deposit $100 into your stock trading account. With 100× leverage, you can trade up to 100 × 100 = $10,000. You could buy 100 shares at $100 each, 33 shares at $300 each, or any other combination within that amount. Without leverage, you can trade $100.
How to trade without leverage
Leverage is applied automatically when you open positions whose combined value exceeds your balance. If you do not want to use it, keep the combined value of your open positions within your balance.
What to keep in mind
On the stock market, an overnight fee applies if the combined value of positions carried into the next trading day exceeds your balance. No overnight fee is charged on stocks if you do not use leverage.
On the other markets, the overnight fee is charged on the full value of each open position, whether or not you use leverage.
If you held a short position in a stock on the ex-dividend date, you are charged the full dividend amount. More about dividend charges.
The stock market also has a Night Threshold: the maximum combined value of positions you can carry into the next day. If you exceed it at market close, the risk management system may reduce your positions at the market price.
The more leverage you use, the greater your potential loss from price movements. We recommend reducing your open positions if your loss approaches your loss limit. How the loss limit and automatic position closure work.