📊Long Perpetuals

Long perpetuals are used by traders when they expect to see a rise in the asset price.

NeoStocks AI offers four different types of long perpetual strategies:

• Trend Following Long

• Breakout Long

• Swing Trading Long

• Scalping Long

Long Perpetual Positions

A long perpetual position is a leveraged contract that allows the trader to profit from price increases without owning the underlying asset or having an expiration date.

How Long Perpetuals Work:

The buyer chooses the asset, leverage, and position size for the perpetual contract.

• Asset: The cryptocurrency being traded (BTC, ETH, SOL, BNB, ADA).

• Leverage: The multiplier applied to the trading position (2x to 20x).

• Position Size: Total market exposure controlled by the trader.

The margin requirement is calculated based on the chosen parameters, and the trader deposits this amount in USDC or other supported collateral using their wallet.

Upon deposit, the trader opens the position and receives immediate market exposure at the current price.

The trader can hold the long position indefinitely as long as margin requirements are maintained.

Outcome: If the price of the asset rises above the entry price, the trader profits. If it falls significantly, the position may be liquidated, and the trader loses their margin.

Position Management:

The trader monitors the position through the NeoStocks AI interface, tracking unrealized profit/loss in real-time.

Funding Rate: Every 8 hours, long traders pay or receive funding based on the perpetual-spot price difference.

The position must maintain adequate margin to avoid liquidation. If the price moves against the trader and margin falls below maintenance requirements, automatic liquidation occurs.

Available Leverage and Holding Periods:

• Leverage: Ranging from 2x to 20x.

• Recommended Leverage:

  • Beginners: 2x - 5x

  • Intermediate: 5x - 10x

  • Advanced: 10x - 20x

• Holding Period: Unlimited (no expiration date)

  • Positions can be held for minutes, hours, days, or weeks

  • Funding rates apply every 8 hours

Example:

Market price of BTC: $50,000.

• Trader deposits: $1,000 margin

• Leverage selected: 5x

• Position size: $5,000 (controlling 0.1 BTC)

• Liquidation price: ~$40,000

Outcome Scenarios:

• If BTC rises to $55,000: Profit of $500 (50% return on margin)

• If BTC falls to $45,000: Loss of $500 (50% loss on margin)

• If BTC falls to $40,000: Position liquidated, total loss of $1,000

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Advanced Strategies

Trend Following Long

Structure: Entering long positions during pullbacks within established uptrends and riding momentum.

Profit Potential: High profits from sustained trends with multiple weeks of upward movement.

Use Case: Betting on continued bullish momentum in trending markets.

Breakout Long

Structure: Entering long positions when price breaks above consolidation ranges or resistance with volume confirmation.

Profit Potential: Explosive profits from momentum acceleration after extended consolidation.

Use Case: Betting on volatility expansion and new trend formation.

Swing Trading Long

Structure: Entering long positions near support levels and exiting near resistance within defined ranges.

Profit Potential: Moderate profits from oscillating price movements over days to weeks.

Use Case: Betting on range-bound market behavior with predictable support/resistance.

Scalping Long

Structure: Entering and exiting long positions rapidly to capture small price movements within minutes to hours.

Profit Potential: Small but frequent profits from micro-trends and momentum shifts.

Use Case: Betting on short-term volatility with high-frequency trading approach.