Long Position
A position created by buying a security, which gains when its price rises and loses when it falls.
Formula
Profit or Loss = (Exit Price - Entry Price) x Quantity
Unit
₹
In depth
Going long is the default way to hold a security and the only one available in the Indian cash segment beyond the trading day, since naked overnight shorts in equities are not permitted for retail investors. Maximum loss is bounded at the amount invested, because a price cannot fall below zero, while the gain is unbounded. That asymmetry is the structural reason long positions are more forgiving than short ones. Being long is often described as 'bullish', but a long position can equally be a hedge or a mandated exposure rather than a view.
Worked example
Buy 500 shares at ₹200, a ₹1,00,000 outlay. Sell at ₹260: profit = (260 - 200) x 500 = ₹30,000, or 30%. The worst case, if the company goes to zero, is the ₹1,00,000 — no more.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Long Position” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.