A long position—also known as simply long—is the buying of a stock, commodity, or currency with the expectation that it will rise in value. Holding a long position is a bullish view.
Long position and long are often used In the context of buying an options contract. The trader can hold either a long call or a long put option, depending on the outlook for the underlying asset of the option contract.
- An investor who hopes to benefit from an upward price movement in an asset will “go long” on a call optionLong position refers to the purchase of an asset with the expectation it will increase in value, A long position is the opposite of a short position, Buying and selling, Holding
. The call gives the holder the option to buy the underlying asset at a certain price.
- Conversely, an investor who expects an asset’s price to fall—are bearish—will be long on a put option—and maintain the right to sell the asset at a certain price.
- Going long on a stock or bond is the more conventional investing practice in the capital markets. With a long-position investment, the investor purchases an asset and owns it with the expectation that the price is going to rise. This investor normally has no plan to sell the security in the near future. In reference to holding equities, long refers to a measurement of time