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 the difference between a short and a long stock position?

A simple long stock position is bullish and anticipates growth, whereas a short stock position is bearish. This position allows the investor to collect the option premium as income with the possibility of delivering their long stock position at a guaranteed, usually higher, price.

What does it mean if an investor has long positions?

If an investor has long positions, it means that the investor has bought and owns those shares of stocks. For instance, an investor who owns 100 shares of Tesla stock in their portfolio is said to be long 100 shares.

How do you take a long position in a stock market?

If you’re bullish, you think the market price will rise. You’ll subsequently take a long position by buying the asset with the aim to sell at a higher price. If you’re bearish, you believe that the market will fall. Thus, you’ll take a short position by borrowing and selling the underlying asset and buying it back at a lower price.