Okuzeka
Investing & the Stock Market vocabulary · Orders & Trading

Long position

Meaning in investing & the stock market, with examples

/ˌlɔːŋ pəˈzɪʃn/nounCommon term

In investing & the stock market, long position means: The situation of owning a security because you expect its price to rise. You gain if the price goes up and lose if it falls.

In Turkish: uzun pozisyon, alış pozisyonu

How it is used

Traders and fund managers say they are long a stock, have a long position in it, or go long. The opposite is a short position. To close a long position you sell the security.

Example sentences

  1. The fund has a large long position in European banks.

  2. I closed my long position in gold after the price hit my target.

Common collocations

  • open a long position
  • close a long position
  • go long
  • be long a stock
  • short sellingSelling borrowed shares in the hope of buying them back later at a lower price and returning them, so that the seller profits from a fall in price.
  • leverageThe use of borrowed money or financial products to control a larger investment than your own money would allow, which increases both possible gains and losses.
  • hedgeTo reduce the risk of losing money on an investment or business exposure by taking an opposite position, often with derivatives such as futures or options.
  • stop-loss orderAn order that automatically sells a security if its price falls to a chosen level, used to limit how much an investor can lose on a position.

More terms: Orders & Trading

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This page explains English vocabulary for learners. It is not financial advice.