Net Long
Definition of 'Net Long'A condition in which an investor has more long positions than short positions in a given asset, market, portfolio or trading strategy. Investors who are net long will benefit when the price of the asset increases. |
|
Investopedia explains 'Net Long'Many mutual funds are restricted from short selling, which means the funds are usually net long. In fact, most individual investors do not hold large short positions, making the net long portfolio a common and usually expected investing situation.A position that is net long position is the opposite of a position that is net short. |
Related Definitions
Articles Of Interest
-
Short Selling Tutorial
Want to profit on declining stocks? This trading strategy does just that. -
Stock Basics Tutorial
If you're new to the stock market and want the basics, this is the tutorial for you! -
Women: Invest In Your Financial Literacy
Learning about money may seem intimidating, but it's not as hard as it looks. -
4 Behavioral Biases And How To Avoid Them
Here are four common common behavioral biases for traders and how to minimize their effects on your portoflio. -
Mutual Fund Ratings: Crucial or Insignificant?
Mutual fund ratings can help investors, but they have their drawbacks as well. -
Multi-Asset Funds Or Your Own Mix?
The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own. -
5 ETFs Flaws You Shouldn't Overlook
Despite their popularity, exchange traded funds have some drawbacks that investors should know about. -
Bear Put Spreads: A Roaring Alternative To Short Selling
This strategy allows you to stop chasing losses when you're feeling bearish. -
Which Mutual Fund Market Cap Suits You?
Different funds invest in companies with different market caps. Find out which is right for you. -
12b-1: Understanding Mutual Fund Fees
Many mutual funds charge investors a 12b-1 fee to pay for marketing and promotion expenses.