Long position


 

Home
Site Map
Add Term
Search
About Us
Contributors

Long position

The 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 position

Owning 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 Matches

Position limit

Position limit

The maximum position, either net long or net short, in a futures market or options market that may be held or controlled by one person as prescribed by an exchange or by the CFTC. Such limits can be set for individual expiration months, such as the spot month, and for all listed expiration months combined. Since hedgers are often exempt from such limits, position limits are often termed 'speculative limits'.


Position diagram

Position diagram

Diagram showing the possible payoffs from a derivative investment.


Welfare proposition

Welfare proposition

In trade theory, this usually refers to any of several gains from trade theorems.


Short position

Short position

Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought back to close out the transaction. This technique is used when an investor believes the stock price will drop.


Positioning

Positioning

Influencing consumers' perception of your company and products relative to your competitors' companies and competing brands and products.


Further Suggestions

Foreign asset position
Synthetic forward position
Covered position
Clear a position
Net position
Position sheet
Discretionary Proposition
Core propositions
Position trader
Position
Equilibrium position
Position limits
Open position
Net foreign asset position
Miller and Modiglianis irrelevance proposition
Interpositioning
Spread position
Long position in an option
Heckscher-Ohlin Core Propositions
Take a position
Covered position
Open position
Disposition of Real Estate Statement
Modigliani and Miller Proposition I
synthetic position


 
All rights Reserved. Do not copy without permission.