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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
Buying a stock expecting it to go up. The normal way most people invest.
Why It Matters
Going 'long' is standard investing - you buy shares hoping they increase in value. Your maximum loss is limited to what you invested (a stock can only go to zero), but your potential gain is unlimited (stocks can rise 10x, 100x, or more). Most 401(k)s and index funds are long-only. When someone says 'I own Apple stock,' they have a long position.
Key Points
- Long = bullish (you think it will go up); Short = bearish (you think it will go down)
- Long positions benefit from dividends; short positions must pay them
- Historically, being long the market has been a winning strategy - stocks rise over time
Related Terms
Common Questions
Buying a stock expecting it to go up. The normal way most people invest. Going 'long' is standard investing - you buy shares hoping they increase in value. Your maximum loss is limited to what you invested (a stock can only go to zero), but your potential gain is unlimited (stocks can rise 10x, 100x, or more).
Going 'long' is standard investing - you buy shares hoping they increase in value. Your maximum loss is limited to what you invested (a stock can only go to zero), but your potential gain is unlimited (stocks can rise 10x, 100x, or more). Most 401(k)s and index funds are long-only. When someone says 'I own Apple stock,' they have a long position.
Long = bullish (you think it will go up); Short = bearish (you think it will go down)
Long positions benefit from dividends; short positions must pay them
Historically, being long the market has been a winning strategy - stocks rise over time