Long Position
A long position means you own an asset and profit when its price increases. It's the most straightforward way to invest: buy low, sell high. Going long expresses bullish conviction and is the default position for most investors.
Understanding the Concept
• Maximum loss is 100% (asset goes to zero) • Unlimited profit potential as price can rise indefinitely • Can be leveraged to amplify gains (and losses) • Opposite of short position (betting on decline)
Real-World Example
You believe Bitcoin will rise and buy 1 BTC at $40,000. This is a long position. If Bitcoin rises to $60,000, you profit $20,000 (50% gain). If it falls to $30,000, you lose $10,000 (25% loss). You maintain the long position as long as you hold the asset.
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