When used in trading, long refers to a position that makes a profit if an asset’s market price increases.
Usually used in context as “going long” or “taking a long position“.
For example, if you go long EUR/USD, you are buying euros and selling U.S. dollars.
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 allow traders to take a long position on a market without actually buying the underlying asset.