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DEFINITION of 'Bull Position'

A long position in a financial security, such as a stock in the stock market. A bull or long position seeks to profit from rising prices in certain securities. When prices rise, a bull position becomes profitable. If prices fall, the bull position is not profitable. A bull or long position is the most well-known type of position and is what is typically used in "buy and hold" investing. An alternative way to initiate a bull position can include buying call options.

BREAKING DOWN 'Bull Position'

A bull position is the opposite of a bear position. A bull position is a trade or investment that is initiated in the hopes that the instrument's price will rise and make a profit. A bull market occurs when prices are rising, and is characterized by investor optimism and confidence that prices will continue to rise.

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  1. What are common trading strategies used in a bull market?

    Discover four commonly used trading strategies by investors and analysts to make profits from a prolonged bull market, including ... Read Answer >>
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  3. What types of securities perform best in a bull market?

    Read about the types of securities, such as stocks or ETFs, that tend to post the largest gains when the economy is enjoying ... Read Answer >>
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    Find out which securities provide the best opportunities for entering long positions, including how this strategy is used ... Read Answer >>
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