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Glossary

Long position

1 min read

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.

Related Terms
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.
Learn more.
Margin trading
Margin trading is when a trader borrows money to execute a trade, using leverage to buy or sell more of an asset than they could otherwise afford.
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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.
Learn more.
Leverage
Leverage is the use of debt to boost returns, buying power, or asset financing. A person or firm is leveraged when they use borrowed capital to grow returns.
Learn more.
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