Long Position
A long position is a type of investment strategy in which an investor buys a security with the expectation that its value will increase. This is the opposite of a short position, in which an investor sells a security with the expectation that its value will decrease. Long positions are typically used by investors who are bullish on a particular security or market.
History of Long Position
The concept of a long position has been around since the beginning of the stock market. In the early days of the stock market, investors would buy shares of a company with the expectation that the company would become more profitable and the value of the shares would increase. This is still the same concept today, but with the advent of derivatives and other financial instruments, investors can now take long positions in a variety of different securities.
Comparison of Long Position
| Long Position | Short Position |
|---|---|
| Buying a security | Selling a security |
| Expectation of increase in value | Expectation of decrease in value |
| Bullish on security or market | Bearish on security or market |
Summary
A long position is an investment strategy in which an investor buys a security with the expectation that its value will increase. This is the opposite of a short position, in which an investor sells a security with the expectation that its value will decrease. Long positions are typically used by investors who are bullish on a particular security or market. For more information about long positions, investors can visit websites such as Investopedia, The Balance, and Yahoo Finance.
See Also
- Short Position
- Bullish
- Bearish
- Derivatives
- Options
- Futures
- Stocks
- Bonds
- Investment Strategies
- Risk Management
