Net Long

AAA

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 TERMS
  1. Square Position

    A term used in foreign-exchange trading. The term "square position" ...
  2. Short (or Short Position)

    1. The sale of a borrowed security, commodity or currency with ...
  3. Net Short

    A condition in which an investor has more short positions than ...
  4. Hedge

    Making an investment to reduce the risk of adverse price movements ...
  5. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, ...
  6. Underlying

    1. In derivatives, the security that must be delivered when a ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. Short Selling Tutorial
    Active Trading Fundamentals

    Short Selling Tutorial

  3. The Elder-Ray Indicator: Seeing Into ...
    Active Trading

    The Elder-Ray Indicator: Seeing Into ...

  4. 10 Timeless Rules For Investors
    Active Trading Fundamentals

    10 Timeless Rules For Investors

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center