Trading

Long position

Ownership or exposure that generally benefits when the asset’s price rises.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

Buying 100 shares at $50 commits $5,000; a move to $45 creates a $500 unrealized loss before costs and distributions.

IMPORTANT DISTINCTION

An unleveraged share position and a leveraged or derivative long position can have different financing and maximum-loss profiles.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — order types and execution

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