Long Stock

Long Stock

What is a long stock?

A long stock is an expression used when you own shares of a company. It represents a claim on the company’s assets and earnings. As you increase your holdings of a stock, your ownership stake in the company increases. Words such as “shares”, “equity” and “stock” all mean the same thing. In the world of trading, being long on a stock means that you currently purchased shares of a company and have it part of your open positions.

What are its components? Can you show me how to long a stock on a trading platform?

The components of a long stock are quite simple. You simply need to perform a buy order to open a long position on a stock:

When and why should I have a long stock?

            You should have a long stock when you expect the stock price to go up. In other words, you have a bullish position on the security.

What does it look like graphically? What is the payoff and profit graph?