Glossary entry
A long position generally benefits when the price of the held asset or referenced instrument rises. Buying shares creates an ownership position; buying a futures contract creates contractual exposure instead. The effect of a price change depends on quantity, contract size, leverage, and costs, so the word long alone does not describe total risk.
Illustrative example
An investor buys 20 shares at 30 each. A rise to 32 increases their market value by 40 before trading costs and taxes.
What to consider
An unleveraged share purchase can lose its entire value. Leveraged long positions may face additional losses or forced closure under their terms.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.