What does it mean to be long on a stock?

Being long on a stock or bond investment is a measurement of time. Investors can establish long positions in securities such as stocks, mutual funds, or currencies, or even in derivatives such as options and futures. Holding a long position is a bullish view. A long position is the opposite of a short position (also known simply as "short").

What is a long position in stock trading?

With options, a long position refers to a particular trading strategy — buying long call or put options, depending on which way you think a stock price will move within a few months. Both types of long positions are optimistic strategies, in the sense that you are buying something in the hopes it will increase in value.

What does it mean if XYZ stock is long or short?

For example, an investor who owns 100 shares of XYZ company stock in their portfolio is said to be long 100 shares. This investor has paid the full cost of owning the shares. Going short on a stock means an investor has a negative position in the stock, meaning they have sold stock they do not own.

Should you take a long or short position in a stock?

Investors who are looking for an easier way to go short often turn to options, and options offer a way to short stock without the same risks and with magnified returns if the stock goes your way. While they may sound like opposite strategies, taking a long or short position in a stock has some asymmetric payoffs and risks.