Quantcast
Going Long: What Does It Mean? | SterlingTerrell.net

Going Long: What Does It Mean?

 Long Position Payoff Chart

What does it mean to "go long" a commodity, stock, index, or some other asset?

It simply means: To buy.

To enter into a long position, you simply buy that asset.

As we all know - if you buy some type of asset - that means at some point in the future, you have to get out of the position.

And to get out of a long position - you simply sell.

Another way of saying the same thing is:

In a long position, you will have a profit if prices increase.

Conversely, in a long position, you will have a loss if prices decrease.

Going long has unlimited potential profit as prices rise - and unlimited potential loss as prices fall.