Home » Glossary »
Natural long
A trader said to be in the natural long position when he owns the actual asset and will benefit from its price appreciation. For example, if you buy a BTC/USD pair on the spot market (not the futures contract), you are now the owner of the coins you purchased, which makes you be in the natural long position on BTC.
It doesn’t matter where you store your coins, whether it’s an exchange wallet, hardware wallet, paper wallet, etc., as long as you own it and can access it, you are natural long.
In any trading pair (like BTC/USD or EUR/USD, or anything else), if you own then base currency, you are natural long, and if you own the quote currency, you are natural short.