long position

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Related to Long Positions: short position

Long position

Owning or holding options (i.e., the number of contracts bought exceeds the number of contracts sold). For equities, a long position occurs when an individual owns securities. An owner of 1,000 shares of stock is said to be "Long the stock." Related: Short position.

Long Position

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.

long position

The net ownership position in a particular security. If an investor owns 500 shares of Wal-Mart common stock, that person is said to be long 500 shares of Wal-Mart. Likewise, the more unusual situation of owning 1,000 shares of a particular stock at a time when 300 shares of the same stock have been sold short produces a long position of 700 shares. Being long indicates an expectation of rising share prices. Also called long. Compare short position.

Long position.

Having a long position in a stock means you own the security.

You have the right to collect the dividends or interest the security pays, the right to sell it or give it away when you wish, and the right to keep any profits if you do sell.

Similarly, you have a long position in an option when you hold the option, and you have the right to exercise it before expiration or sell it.

The term is also used to describe a position that's maintained by your brokerage firm or bank on your behalf. For example, if your firm holds stocks for you in street name, you are said to be long on their books.

Having a long position is the opposite of having a short position in a security. A short position means you have borrowed shares through your broker, sold them, and must return them, plus interest, at some point in the future.

Similarly, a short position in an option means that you have sold the option, giving the holder the right to exercise and committing yourself to fulfilling the terms should exercise occur and you're assigned to meet them.

long position

a situation in which a dealer or MARKET MAKER in a particular COMMODITY, FINANCIAL SECURITY or FOREIGN CURRENCY is selling less than he is buying, so that his working stock of the item increases (i.e. becomes ‘long’).

long position

a situation in which a dealer or MARKET MAKER in a particular COMMODITY, FINANCIAL SECURITY or FOREIGN CURRENCY is selling less than he is buying, so that his working stock of the item increases (i.e. becomes ‘long’). Contrast SHORT POSITION.
References in periodicals archive ?
Long positions in Brent rose by 8 million barrels, which was relatively modest given the complete outage of the Forties pipeline system, while short positions were trimmed by 1 million barrels.
There may be fundamental reasons for hedge funds' bullishness towards gas but the concentration of long positions has become a source of downside price risk in the short term.
The combined impact of these changes is that hedge funds and other money managers increased their net long position in crude futures and options by a modest 26mn barrels to 555mn barrels.
But the market has become "locked" into a classic bubble as all the hedge funds and money managers have tried to implement the same, bullish, view on prices at the same time by taking long positions in WTI and Brent futures and options.
The size of the long positions is giving reason for concern as the market can easily be looked at as being in overbought territory, at least in the short term.
lt;/strong>If the security is trending up, then one might only take long positions.
That means taking both short and long positions on stocks and bonds (including high-yield issues), as well as diversifying into mortgage-backed securities, distressed securities, convertible arbitrage (buying a convertible security and selling short the underlying common stock) and other financial instruments.
Hedge funds and other money managers boosted net long positions in the three major Brent and WTI futures and options contracts by the equivalent of 48 million barrels.
Since the start of the year, hedge funds have added almost 195mn barrels of additional long positions in Brent and WTI, while cutting short positions by 235mn.
The Commitment of Traders Report (COTR) for the week ending Tuesday, 29th May 2012, shows a small reduction of long positions, and a significant reduction of short positions.
Many hedge funds with long positions have held on to them, even as prices have tumbled by around $10 per barrel, around 20 per cent.