Long Position
Also known as: Going Long, Buying
A trade executed with the expectation that the asset's price will rise in value.
Plain-English Meaning
Going long is the traditional way people think about investing: buy an asset now at a lower price, wait for the price to go up, and sell it later at a higher price to capture the difference.
Why It Matters
Taking a long position is the baseline mechanic for attempting to capture upward market momentum. Your potential profit scales as the price increases above your entry point.
Simple Example
If you take a long position on Gold at $2,000 per ounce and the price rises to $2,050, your position has gained in value. If the price falls to $1,950, your position is sitting in a loss.
This educational example uses selected assumptions for reference calculation purposes. Real conditions may vary by broker, exchange, or instrument.
Beginner Mistake
Holding a losing long position indefinitely based on "hope." Without a clear risk management plan, traders may ride a falling asset all the way down, draining their margin.