Net Long

Net Long

A situation in which an investor, fund, or portfolio has more long positions than short positions. That is, an investor has a net long position if he/she has bought more securities than he/she has sold or short-sold. This means that the investor would benefit if prices increased so that he/she could then close out his/her long positions and make a profit. If the positions decline in value, the investor will lose money. See also: Net short.

---

Net Long

What Does Net Long Mean?

A condition in which an investor has more long positions than short positions in a specific asset class, market sector, portfolio, or trading strategy. Investors who are net long will benefit when the price of the asset increases.

Investopedia explains Net Long

Many mutual funds are restricted from short selling; this means the funds are usually net long. In fact, most individual investors do not hold large short positions, making the net long portfolio a common and usually expected investing situation. A position that is net long is the opposite of a position that is net short.

Related Terms:
• Delta
• Hedge
• Long (or Long Position)
• Overbought
• Short (or Short Position)