Long Position
Buying an asset expecting its price to rise. You profit when the price goes up; you lose when it goes down.
A long position means you own an asset and profit if its price rises. It is the most straightforward way to trade: buy low, sell high. When you "go long" on a stock, you purchase shares and hold them.
Your maximum loss in a pure long position is the amount you invested (the position goes to zero). Your potential profit is theoretically unlimited since there is no ceiling on how high a price can go.
Long positions can be held for seconds (day trading) or years (position trading). The time horizon and the instrument used (stock vs. options vs. futures) change the risk profile significantly.
Related Terms
Bull Market
A sustained period of rising prices, typically defined as a 20%+ gain from a recent low. Optimism and buying pressure dominate.
BeginnerCapital Gain
The profit made when you sell an asset for more than you paid. Short-term and long-term gains are taxed differently.
BeginnerDay Trading
Opening and closing all positions within the same trading session — no overnight exposure. Requires focus, discipline, and strict risk management.
IntermediateEquity
Ownership value in an asset after all debts are subtracted. In markets, "equity" usually means stocks.
BeginnerLeverage
Using borrowed capital to increase position size — amplifying both gains and losses beyond your own equity.
IntermediateMargin
Funds deposited as collateral to open a leveraged position. If losses erode your margin, your broker may issue a margin call.
IntermediatePosition Trading
Holding trades for weeks to months based on longer-term trends. Lower frequency, bigger targets, less screen time.
IntermediateShort Position
Borrowing shares and selling them, hoping to buy them back cheaper. Profit when the price falls; loss when it rises.
IntermediateSwing Trading
Holding positions for days to weeks to capture a directional "swing" in price. Balances active trading with manageable time commitment.
Intermediate