Long Position
What is a long position?
Investors take a long position in the stock market when they buy stocks and hold on to them, believing prices will increase. It’s the opposite of a short position.
Where have you heard about long positions?
‘Long’ or ‘long position’ is an essential part of investment language. Many people think of long positions as being simply 'investment', but to market professionals it is just one of a number of options.
What you need to know about long positions...
A long position reflects the belief that the price of the asset will rise over time, rather than fall.
Thus someone who has 'gone long' of Daimler shares, or the dollar, or Brent crude oil or anything else, is reasonably confident that the value of the asset concerned will be higher in the future than it is at the time of purchase, giving them a profit on the deal.
But if they are wrong, the long position will be showing a loss, it will be 'underwater' in market slang. In that sense it is no less of a risk than a short position.
