# Long

{% hint style="info" %}
Before reading this, please make sure that you [understand leverage](https://docs.xoxno.com/leverage/understanding-leverage) first
{% endhint %}

#### When a Long is useful

* Say you got 1 EGLD, and you think EGLD **will go up** in the future
* You would like someone to lend you USDC so that you can buy more EGLD
* Later on you need to repay the USDC debt, but thanks to EGLD's increased value you need to spend less EGLD, and leftover EGLD goes into your wallet as a profit

#### Example

* You start a 4x EGLD Long on XOXNO with 1 EGLD, ending up with 4 EGLD @ 15$ as collateral and 45 USDC @ 1$ as debt
* If EGLD goes up X%
  * You win 4X%, because you have exposure to 4 EGLD instead of just 1 EGLD
  * To start the position, 45 USDC were swapped to 3 EGLD
  * To close the position, you need to spend less than 3 EGLD to repay the 45 USDC (because EGLD became more valuable)
  * So not only do you gain X% on your initial collateral of 1 EGLD
  * But also on the 3 EGLD that you leveraged, because the leftover EGLD after repaying the USDC goes in your wallet
* If EGLD goes down X%
  * You lose 4X%, because you have exposure to 4 EGLD instead of just 1 EGLD
  * To start the position, 45 USDC were swapped to 3 EGLD
  * To close the position, you need to spend more than 3 EGLD to repay the 45 USDC (because EGLD became less valuable)
  * So not only do you lose X% on your initial collateral of 1 EGLD
  * But you also need to use part of your initial collateral to repay the USDC debt (because 3 EGLD are not enough anymore), so that you may get back e.g. just 0.8 EGLD instead of your initial 1 EGLD

#### Advanced Long

* In the previous examples, you were always Longing EGLD against a stable coin like USDC
* But you can actually Long any coin against any coin
* So you can 4x Long EGLD against XOXNO, WETH, WBTC, or any other supported market
* Be aware that when longing a volatile token against another volatile token, you get influenced by both token's price fluctations
  * For example, when Longing EGLD against XOXNO
    * You profit when
      * EGLD goes up (because you'll need less EGLD to repay the XOXNO debt)
      * XOXNO goes down (because you'll need less EGLD to repay the XOXNO debt)
    * You lose when
      * EGLD goes down (because you'll need more EGLD to repay the XOXNO debt)
      * XOXNO goes up (because you'll need more EGLD to repay the XOXNO debt)