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Published On: Mon, Feb 11th, 2013

Net Long

Net Long refers to when a trader’s long positions in value terms exceed his short positions in value terms.

The term Net Long refers to a trader’s overall positions in money terms.  If a trader is Net Long, his strategy will have a greater chance of earning gains when the market increases in value.  The term is also used as a hedging term, and especially used in a hedge fund trading strategy known as a long/short strategy.  In the long/short strategy the portfolio managers and traders will short securities for a portion of the total value of the trading account and be long a portion of the trading account. A long/short strategy is Net Long when the value of the Long positions exceeds the short positions.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

 

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