Long & Short

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Long & Short
Using Hundred Finance to leverage trade
To long or short an asset, in general terms, is to place a bet on whether its price will go up or down in the future. Unlike trading between assets, where a "good trade" necessitates taking into account the changes in value of two tokens versus a unit of account, longing and shorting allows you to focus purely on the price future of one. The mechanism of placing a long or a short trade entails borrowing and thus acquiring debt or "leverage." This gives the practice the name leverage trading. The asset borrowed (either the unit of account or the asset to be shorted) is used to purchase more of the collateral used on the assumption that it will have a greater value in the future and allow for the debt to be paid off while leaving a portion (the profit) that can be retained.
Hundred Finance as a Leverage Tool
Due to borrowing being a key aspect of leverage trading, Hundred Finance, as a lending protocol, can be used as a means to long and short and has a number of advantages over other tools like centralized exchange platforms (CEX) and other lending protocols. These include:
Low cost/high reward: As Hundred Finance rewards the staking of stables, we possess deep stablecoin liquidity that makes the cost of borrowing incredibly competitive. On top of this, if your collateral is a stablecoin, it is possible to stake a portion of it for HND returns in response to the asset being shorted falling in price and the borrow limit growing in response.
Low transaction fees: As Hundred Finance is focused on chains able to offer low transaction fees, it is possible to adjust leveraged positions cheaply and easily. This is in stark contrast to the Ethereum mainnet, where carrying out simple tasks such as repaying a loan can often cost hundreds of dollars (eating into potential profits or compounding losses).
Decentralization: Unlike a CEX where you are reliant on the platform in question authorizing your withdrawals in line with their policies, Hundred Finance is trustless protocol deployed on the blockchain.
And so, through the act of supplying, borrowing and selling assets (repeating the process to increase leverage) using Hundred Finance, an easily managed, capital efficient and decentralized means to long and short cryptocurrency is freely available to our users. In  the following pages we explain how to do so.
Note: For the sake of simplicity, throughout these explanations we'll assume the crypto asset being traded is ETH and the unit of account is the US dollar. This doesn't, of course, have to be the case. In fact, many long term traders choose to make their unit of account ETH or BTC due to their greater faith in cryptocurrency monetary policy over that of fiat currencies like the dollar.
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Longing on Hundred Finance
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Hundred Finance as a Leverage Tool