Long position


 

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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

Clear a position

Clear a position

To eliminate a long or short position, leaving no ownership or obligation.


Discretionary Proposition

Discretionary Proposition

A 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 position

Synthetic forward position

A forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market.


Position building

Position building

Buying shares to build up a long position or selling shares to create a short position in a particular security or group of securities.


Synthetic position

Synthetic position

A 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 Suggestions

Open position
Covered position
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Welfare proposition
Modigliani and Miller Proposition I
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position limit
Long position in an option
Disposition of Real Estate Statement
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Interpositioning
Covered position
Take a position
Position sheet
Open position
Position diagram
Heckscher-Ohlin Core Propositions
Positioning
Position limits
Net position
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Miller and Modiglianis irrelevance proposition
Short position
Foreign asset position
Equilibrium position


 
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