When an investor buys an asset or derivative with the intention of it rising in value, this is referred to as a long position. Long positions in assets such as stocks, mutual funds, and currencies, as well as derivatives such as options and futures, are available to investors. A bullish viewpoint is one in which one holds a long position. The opposite of a short position is a long position (also known simply as “short”). When buying an options contract, the phrase “long position” is frequently used. Depending on the prognosis for the underlying asset of the option contract, the trader can hold a long call or a long put option. An investor who wants to profit from an asset’s upward price movement, for example, may “go long” on a call option. The holder of a call option has the opportunity to purchase the underlying asset at a specific price. An investor who expects the price of an asset to decline will go long on a put option, retaining the right to sell the asset at a certain price. In actuality, the phrase “long” is an investment word that can have a variety of connotations depending on the context. The most frequent definition of lengthy is the amount of time investment has been kept. When employed in options and futures contracts, however, the term long has a distinct connotation.
Long Position: First you will buy, and then sell to cover(close) the existing position. A long position in options contracts indicates the holder owns the underlying asset.
If You feel that the share price of company ABC will rise, then you will buy it(you can sell it later), so you hold few shares of that company. That conveys, you’re holding long position in ABC company.( or you’re on the long side)
Example:
- Long position: 10:00 AM You bought 15shares of ABC company @₹100
- 11:00 AM you covered the existing long position by selling 15shares @₹103
- Profit =15*(103–100)=₹45