Trading Long
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In finance, a long position in a security, such as a stock or option, or equivalently to be long a security, means the holder of the position owns the security.
In contrast to going short, 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 like an option, or to be long a futures contract, means the holder of the position has the right, but not the obligation to buy the underlying security at a later date. Therefore, a long position makes a profit when the value of the underlying security goes up. In options trading this would be a "Call" or Call Option.
Ricky Schmidt
January 10, 2007
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