Long Position

A long position has positive economic exposure to an instrument, generally gaining when its price rises and losing when its price falls.

Long exposure can come from owning an asset or from a derivative that references its price without transferring ownership. The result also depends on position size, leverage, fees, financing, distributions, and the currency in which P&L is measured. Although an unleveraged owned asset usually cannot fall below zero, a leveraged long position can be liquidated before a later recovery.