Long Position (Long)

What is a Long Position (long)?

A long position is the buying of a stock with the expectation that it will rise in price. Holding a long position is a bullish view. Investors with long positions are in it for the long run and do not intend to sell soon.

Long Holding Investment

Typically when someone refers to going long, they are talking about Long-term holding. When I started trading in the stock market, I also only looked for long-term investment since I have school for most of the year. Going into long positions on stocks may be beneficial to those investors who do not have a lot of time in the day to focus on the stock market. This spares the investor the need for constant market-watching or market-timing.

Options/ Futures

However, the terms long and long are also utilized in buying options or futures contracts. In terms of options contracts, investors can be either long in calling or putting. If the investor believes that the price will move upwards, they will go long on a call option. On the other hand, if the investor assumes that the price will drop, they will go long on a put option.

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