What Is Long Position? Meaning & Example
Definition
A long position means owning an asset with the expectation that its price will rise. It is the most common way people invest.
Related terms
Short selling means borrowing an asset and selling it, hoping to buy it back later at a lower price. Losses can be very large because a price can keep rising.
Bull MarketA bull market is a period when prices are rising broadly and investor confidence is strong. It is often described as a rise of 20% or more from a recent low.
StockA stock represents partial ownership in a company. Owning shares gives you a claim on part of the company's assets and profits, and sometimes voting rights.
What is Long Position?
A long position means owning an asset with the expectation that its price will rise. It is the most common way people invest.
Can you give an example of Long Position?
Buying 20 shares to hold for growth means you have a long position in that stock.