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Long position

Principles of Finance glossary · Financial Statements, Markets & Working Capital

Definition

A position that profits when the asset's price rises.

Long position in plain English

Going 'long' simply means you own something (or have bet on it) because you expect its price to go UP: you win if it rises and lose if it falls. It is the most natural way people invest, buy now and hope to sell higher later. Think of buying concert tickets early because you believe demand will push resale prices up, you are 'long' on those tickets. The word 'long' is just trader-speak for 'positioned to profit from a rising price.'

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