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Net long - What does it mean?

Someone asked on Aug 09, 2018 - 1 answer

Hi,

in some of the cases I stumbled across the term "net long". Can anyone explain what exactly is meant by that?

Thanks a lot!

Sidi replied on Aug 09, 2018
McKinsey Engagement Manager & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 60+ candidates secure MBB offers

Hi Anonymous,

"net long" is a term used in an investment markets context. Investors and market traders can take either a long or short position on an investment. Long positions are typically taken by bullish investors and short positions are associated with bearish investors. If there are more bullish than bearish investors for a given asset or portfolio, then investors (in the aggregate) take a net long position on that asset/portfolio.

Cheers, Sidi

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