Glossary

Long Position

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A long position is the typical way in which an investor gains exposure to an asset. A long position means that an investor has a positive exposure to an asset. This occurs when they buy the asset on a financial market. An investor with a long position is hoping that the asset increases in value.

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Short Selling
Short selling is the selling of an asset that the seller does not own. This results in a negative position for the seller.
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Margin Trading
Margin trading occurs when a trader borrows money to execute a trade. Margin trading makes use of leverage to purchase or sell more assets than a trader would otherwise have access to.
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Call Option
A call option is a contract that gives the buyer the right but not the obligation to sell an asset for a specified price.
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Leverage
Leverage is the use of debt to increase returns, buying power, capital, or asset financing. A firm or individual is leveraged when they use borrowed capital to increase or generate returns, or use debt to finance assets.
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