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Trading Glossary

Long

Basics

What it means

Buying an asset so you profit if its price goes up. You own it and want to sell it later at a higher price.

Example

You buy 100 shares of AAPL at $150. If the price rises to $160, your long position is worth $16,000 and you have a $1,000 unrealized profit.

Mistake beginners make

Beginners go long without a sell plan, then watch a winning position turn into a loss because they never decided at what price to take profit or cut the loss.

Related terms

  • Short — Betting that an asset will fall in price. You borrow the asset, sell it now, and aim to bu…
  • Position — An open trade you currently hold. A long position means you own the asset; a short positio…

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