Longs
Longs are a type of financial investment that involves buying a security with the expectation that its value will increase over time. The investor is said to be “long” on the security, meaning they are expecting it to increase in value. This is in contrast to “shorts”, which involve selling a security with the expectation that its value will decrease. Longs are a common strategy used by investors to make a profit in the stock market.
History of Longs
The concept of longs has been around since the beginning of the stock market. It is a basic strategy used by investors to make a profit by buying a security and then selling it at a higher price. This strategy has been used for centuries, and it is still a popular way to make money in the stock market today.
Longs are a popular strategy for investors because they can be used to make a profit in both rising and falling markets. In a rising market, the investor can buy a security and then sell it at a higher price. In a falling market, the investor can buy a security and then wait for the price to rise before selling it. This strategy can be used to make a profit in any market condition.
Comparison Table
Longs | Shorts |
---|---|
Buy security with expectation of increasing value | Sell security with expectation of decreasing value |
Can be used in rising and falling markets | Can be used in rising and falling markets |
Can be used to make a profit | Can be used to make a profit |
Summary
Longs are a type of financial investment that involves buying a security with the expectation that its value will increase over time. This strategy has been used for centuries, and it is still a popular way to make money in the stock market today. Longs can be used to make a profit in both rising and falling markets, and they can be used to make a profit in any market condition. For more information about longs, investors can visit websites such as Investopedia and The Balance.
See Also
- Shorts
- Options
- Futures
- Stocks
- Bonds
- Mutual Funds
- ETFs
- Forex
- Commodities
- Derivatives