What is a long position (long position)?

A long position in the stock market is when an investor buys a stock in anticipation of a rise in the stock price and holds it for a long period of time. Short Position the opposite.

Where have you heard of long positions (long positions)?

"Short selling" or "long position" is commonly used investment jargon. Many people think of long positions directly as "investments", but for market experts, it is only one of many investment options.

What you need to know about long positions (long positions)

Long positions reflect investors' belief that asset prices will rise, not fall.

Therefore, investors "short" Daimler shares or US dollars or Brent crude oil or any other asset because they believe that the future value of the corresponding asset will be higher than the purchase price, bringing them a trading profit.

But if expectations are wrong, long positions will be lost, which market slang calls "shrinkage". In this regard, the risk is no less than a short position.