Long

Long

One who has bought a contract to establish a market position and who has not yet closed out this position through an offsetting sale; the opposite of short.

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long

See long position.

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Long

The ownership of a security or derivative, or the state of having bought one or the other. A long position brings with it the right to coupon payments or dividends attached to the security or derivative. Informally, one who owns 100 shares of a stock is said to be "long 100 of the stock." Likewise, an investor who has bought (or holds) an option is said to be "long the option" because he/she has the right to exercise the option at a later date. See also: Short position, Close a position.

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Long (or Long Position)

What Does Long (or Long Position) Mean?

(1) The buying of a security such as a stock, commodity, or currency, with the expectation that the asset will rise in value. (2) In the context of options, the buying of an options contract. The term “long” is the opposite of “short” (or short position).

Investopedia explains Long (or Long Position)

(1) As an example, if an investor owns shares in McDonald's Corp., that investor is said to be “long McDonald's” or “have a long position in McDonald's.” (2) For options, buying a call (or put) options contract from an options writer gives the investor the right, not the obligation, to buy (or sell) a specific commodity or asset for a specified amount at a specified date. Buying the contract makes the investor “long” the contract.

Related Terms:
• Call Option
• Commodity
• Futures
• Put Option
• Short (or Short Position)