Forex long short positions
A long or long position is the buying of a security such as a stock, commodity or currency with the expectation the asset will rise in value.
What does it mean to have a 'long' or 'short' position? — MahiFX
In the context of options, it is the buying of an options contract. A long position is the opposite of a short or short position.
Buying a call or put options contract from an options writer entitles you the right, not the obligation, to buy or sell a specific commodity or asset for a specified amount at a specified date.
With a long position investment, the investor purchases a commodity and owns it with the expectation the price is going to rise. He normally has no plan to sell the commodity in the near future.
A key component of long position investment is the ownership of the stock or bond. This contrasts with the short position investment, where an investor does not own the stock but borrows it with the expectation of selling it and then repurchasing it at a lower price.
A key difference between a long position and a short position in investments is what the investor expects to happen to the price of a commodity. Dictionary Term Of The Day.
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