Trading glossaryReviewed 16 July 2026
Definition
A long position has positive economic exposure to an instrument, generally gaining when its price rises and losing when its price falls.
In market context
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.
Source
Use the primary source for fuller regulatory or market context.