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Long position |
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Long positionThe purchase of a security, commodity or financial instrument (e.g. shares) in the belief that the price will increase. The purchaser hopes to sell the shares at a higher price than he bought at and thus make a profit.Long positionOwning or holding options (i.e., the number of contracts bought exceeds the number of contracts sold). For equities, a long position occurs when an individual owns securities. An owner of 1,000 shares of stock is said to be "Long the stock." Related: Short position.Long position Similar MatchesClear a positionClear a positionTo eliminate a long or short position, leaving no ownership or obligation. Discretionary PropositionDiscretionary PropositionA proposal on a proxy card that brokers can cast in favor of management if they have not yet heard from the beneficial holder ten days before the annual meeting. See: Ten-Day Rule Synthetic forward positionSynthetic forward positionA forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market. Position buildingPosition buildingBuying shares to build up a long position or selling shares to create a short position in a particular security or group of securities. Synthetic positionSynthetic positionA hedging strategy combining futures and futures options for price protection and increased profit potential. For example, by buying a put option and selling (writing) a call option, a trader can construct a position that is similar to a short futures position. This position is known as a synthetic short futures position, and shows a profit if the futures prices decline, and receives margin calls if prices rise. Synthetic positions are a form of arbitrage. Further SuggestionsOpen positionCovered position Spread position Welfare proposition Modigliani and Miller Proposition I Position position limit Long position in an option Disposition of Real Estate Statement Net foreign asset position Interpositioning Covered position Take a position Position sheet Open position Position diagram Heckscher-Ohlin Core Propositions Positioning Position limits Net position Position trader Miller and Modiglianis irrelevance proposition Short position Foreign asset position Equilibrium position |
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