Long Position Definition

A long position is a trade opened by buying an asset with the expectation that its price will rise.

What is a Long Position?

Profit on a long position is realized if the asset's price increases after entry.

It is the most common type of position taken across most financial markets.

Buying 100 shares of a stock at $50 in anticipation of a price increase creates a long position.

Leverage allows traders to control a larger position size using a smaller amount of capital.

A liability is a financial obligation or debt owed by an individual or company to another party.

LIBOR, the London Interbank Offered Rate, was a benchmark interest rate at which major banks historically lent to one another.