Also known as: long positions · long · going long
Written by attorneys · grounded in primary & secondary sources — see below
An investment posture in which a party holds title to or is contractually obligated to purchase a security or commodity in anticipation that its market price will rise.
Lars Lindstrom purchased wheat futures contracts at a fixed price. When the spot price rose sharply, his contracts gained substantial value each day as the exchange marked them to market. The gain accrued because Lars maintained the long position through the delivery date.
Lighthouse Shipping owned Treasury bonds as a long position while leasing warehouse space to a tenant at will. The landlord terminated the tenancy with statutory notice and used the bond proceeds to fund improvements. The long position supplied liquidity without forcing an immediate sale.
Lucia Lopez held a long position in corporate stock and alleged the issuer violated federal disclosure rules. She filed suit directly under the Constitution seeking damages measured by the decline in share value. Federal jurisdiction existed because her claim arose under federal law even without an express private right of action.
Select any source to read its text and confirm it supports the definition.
Lakewood Manufacturing kept a long position in raw materials that emitted odors affecting nearby residents. The continuing nature of the emissions created a significant effect on the public right to clean air. Residents sued for public nuisance damages distinct from those suffered by the general public.
Lila Lin and Landon Long entered a marriage solely to obtain immigration benefits while each retained a long position in separate investment accounts. The court upheld the marriage as valid because the parties satisfied all procedural requirements. Collateral agreements limiting financial responsibility were held unenforceable as contrary to public policy.
Legacy Motors held a long position in undeveloped land located in another state. When the company conveyed the parcel, the forum court applied its own procedural rules to the pleadings while using the situs state's law to determine capacity to transfer title. The selective choice-of-law approach governed only the substantive issues.
A long position exists when an investor owns a security or holds a contract to purchase it, profiting if the price rises. A short position arises when an investor sells securities not owned, profiting if the price falls. The distinction turns on whether the holder benefits from an increase or decrease in market value.
Supporting sources
No. Futures and options contracts allow a party to maintain a long position without taking physical delivery if the contract is closed out or cash-settled before expiration. The position is defined by the contractual obligation to buy at the agreed price, not by actual receipt of the commodity.
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Yes. Purchasing a call option gives the holder the right to buy the underlying security, creating a long position in that security. The option itself is a leveraged claim on future ownership, and the holder benefits if the underlying price rises above the strike price.
Supporting sources
…Duncan v. Louisiana , 391 U. S. 145, 155 (1968). Expressions in many opinions of this Court indicate that it has long been assumed that proof of a criminal charge beyond a reasonable doubt is constitutionally required. See, for example, Miles v. United States , 103 U. S. 304, 312 (1881); Davis v.…