RiskPicksWhat is a Long Position?
A long position means you own shares of a stock and profit when the price goes up. This is the most common type of trade. When someone says "I am long AAPL," they mean they bought Apple stock and are holding it, expecting the price to increase.
How it works
- Buy shares: you purchase shares at the current market price
- Hold: you wait for the price to rise
- Sell to close: you sell the shares at a higher price, and the difference is your profit
Example
You buy 100 shares of AAPL at $150. The price rises to $160. You sell for $160. Your profit is $10 per share, or $1,000 total (minus any fees).
Long vs short
- Long: buy first, sell later. Profit when price goes up. Loss is limited to what you paid (stock can only go to zero)
- Short: sell borrowed shares first, buy back later. Profit when price goes down. Loss is theoretically unlimited (stock can keep rising). See Short Selling
Long bias
Most retail traders have a "long bias," meaning they naturally prefer buying stocks over shorting them. This works well in bull markets but can be costly in bear markets. Learning to trade both sides gives you an edge regardless of market direction.
When a trader says "I have no position" or "I am flat," they mean they have neither a long nor short position in that stock. They are on the sidelines.