Long has a particular significance in relation to IG's platform. Here, we define long in general investing and explain what it means to you when trading with IG.
Long definition
When used in trading, long refers to a position that makes profit if an asset’s market price increases. Usually used in context as ‘taking a long position’, or ‘going long’.
Going long is the opposite of going short or shorting, which means taking a position that makes a profit if an asset’s market price falls.
Taking a long position doesn’t necessarily mean buying an asset. Derivatives like spread bets, CFDs and futures contracts all provide the facility for traders to take a long position on a market without actually buying the underlying asset.
With IG
When CFD trading, it means opening a derivatives trade that returns a profit if the underlying asset increases in price. On our deal tickets, this option is referred to as a ‘buy’.
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