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.