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What is long position?

Also known as: Going long

Definition

A long position profits when the price of the asset rises.

Buying Bitcoin on an exchange is a long position. So is opening a long perpetual futures contract. The loss on an unleveraged long is limited to what you paid; with leverage, the loss can reach your full margin through liquidation.

A portfolio that only holds longs only makes money in one direction of the market. See bidirectional exposure.

Related terms

General education only. Not financial advice.