In the context of spot and spot margin trading:
Long Position (Going Long)
When a trader goes "long," they are buying an asset with the expectation that its price will rise in the future. If the price of the asset does rise, the trader can sell it for a profit. Essentially, going long means you're optimistic about the asset's future value.
Short Position (Going Short)
When a trader goes "short," they are borrowing an asset to sell it at its current price with the plan to buy it back later at a lower price. The difference between the selling price and the repurchase price defines gains that will also be decreased by the borrowing fees when closing the short position. Going short means you're predicting a decline in the asset's value.
Conclusion
In spot margin trading, traders can borrow funds to increase their buying power, amplifying potential profits or losses.
When taking a long position with a margin, traders borrow money to buy more of the asset.
When taking a short position with a margin, traders borrow the asset to sell, hoping to repurchase it at a lower price.