Long (finance): Difference between revisions
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Similarly, a long position in a [[futures contract]], or ''to be long'' a futures contract, means the holder of the position has the obligation to ''buy'' the underlying at a later date. Therefore, a long position makes a profit when the value of the underlying goes up. |
Similarly, a long position in a [[futures contract]], or ''to be long'' a futures contract, means the holder of the position has the obligation to ''buy'' the underlying at a later date. Therefore, a long position makes a profit when the value of the underlying goes up. |
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==See also== |
==See also== |
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* [[Short (finance)]] |
* [[Short (finance)]] |
Revision as of 09:31, 16 May 2006
In finance, a long position in a security, such as a stock or a bond, or equivalently to be long a security, means the holder of the position owns the security.
In contrast to going short (finance), to go long means that an investor intends to hold a security for a relatively long period in hopes that the price of the security will go up over the long term.
Similarly, a long position in a futures contract, or to be long a futures contract, means the holder of the position has the obligation to buy the underlying at a later date. Therefore, a long position makes a profit when the value of the underlying goes up. sachin mench