A long position in the stock market means that an investor has purchased a stock with the expectation that its price will rise. A long position is sometimes referred to as being "long the market." Investors who are "bullish" about the market will take a long position, expecting higher prices in the future. The vast majority of investors take a long position in the market when they invest and investors who purchase for the long-term almost always take a long position. Investors who subscribe to the theory of "buying low and selling high" will take a long position. The opposite of a long position is a short position. Investors who are "short the market" sell stock (as opposed to buying stock) in the expectation of lower prices in the future. |
