Is shorting a stock better than going long?
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”, …
What are the benefits of holding stocks long term?
Oct 03, 2014 · If an investor has long positions, it means that the investor has bought and owns those shares of stocks. By contrast, if the investor has …
What is going long on a stock?
Having a “long” position in a security means that you own the security. Investors maintain “long” security positions in the expectation that the stock will rise in value in the future. The opposite of a “long” position is a “short” position. A "short" position is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will decrease in value.
What are short term and long term stocks?
Apr 01, 2022 · The technology company reported ($0.66) earnings per share for the quarter, topping analysts' consensus estimates of ($0.86) by $0.20. The technology company had revenue of $48.30 million for the quarter, compared to analyst estimates of $38.48 million. View eLong's earnings history.
What does it mean to go long stock?
Going long on a stock or bond is the more conventional investing practice in the capital markets, especially for retail investors. With a long-position investment, the investor purchases an asset and owns it with the expectation that the price is going to rise.
What is stock long or short?
If an investor has long positions, it means that the investor has bought and owns those shares of stocks. By contrast, if the investor has short positions, it means that the investor owes those stocks to someone, but does not actually own them yet.
How do you go long on a stock?
Key Takeaways In a long trade, you purchase an asset and wait to sell when the price goes up. "Buy" and "long" are used interchangeably. When you're in a short trade, you borrow an asset, sell it, and hope to buy it back when the price goes down.
Is short selling legal?
Though the SEC granted short selling legal status in the 20th century and extended its franchise in the early 21st century, some short-selling practices remain legally questionable.
What is long call?
Long call option: A long call option is, simply, your standard call option in which the buyer has the right, but not the obligation, to buy a stock at a strike price in the future. The advantage of a long call is that it allows you to plan ahead to purchase a stock at a cheaper price.
How long can I hold a stock?
How Long Do You Have to Hold a Stock to Be Considered Long Term? As with any asset, you must hold a stock for a minimum of 12 months in order for it to be considered a long-term investment. Anything under that is deemed a short-term holding.
Can anyone short a stock?
There's no time limit on how long you can hold a short position on a stock. The problem, however, is that they are typically purchased using margin for at least part of the position. Those margin loans come with interest charges, and you will have to keep paying them for as long as you have your position in place.
How do you place a long?
0:061:17What is a Long Position? - YouTubeYouTubeStart of suggested clipEnd of suggested clipWith a long position investment. The investor purchases a commodity. And owns it with theMoreWith a long position investment. The investor purchases a commodity. And owns it with the expectation. The price is going to rise. He normally has no plan to sell the commodity.
How were eLong's earnings last quarter?
eLong Inc. ADR (NASDAQ:LONG) issued its earnings results on Wednesday, November, 18th. The technology company reported ($0.66) earnings per share f...
What other stocks do shareholders of eLong own?
Based on aggregate information from My MarketBeat watchlists, some companies that other eLong investors own include Baidu (BIDU) , Ctrip.Com Inte...
What is eLong's stock symbol?
eLong trades on the NASDAQ under the ticker symbol "LONG."
What is eLong's stock price today?
One share of LONG stock can currently be purchased for approximately $18.00.
What is eLong's official website?
The official website for eLong is www.elong.com .
Where are eLong's headquarters?
eLong is headquartered at 3F, Tower B, Xingke Plaza Mansion 10 Middle Jiuxianqiao Road Chaoyang District, BEIJING, BEJ 100015, China .
How can I contact eLong?
eLong's mailing address is 3F, Tower B, Xingke Plaza Mansion 10 Middle Jiuxianqiao Road Chaoyang District, BEIJING, BEJ 100015, China . The techno...
What does it mean to go long on a stock?
Going long on a stock or bond is the more conventional investing practice in the capital markets, The investor purchases an asset and owns it with the expectation that the price is going to rise. In this context, long position refers to both the bullish view of the investor and the length of time that investment is held.
What does "long" mean in investing?
The most common meaning of long refers to the length of time an investment is held. However, the term long has a different meaning when used in options and futures contracts.
What is the meaning of "long position" in investing?
With a long-position investment, the investor purchases an asset and owns it with the expectation that the price is going to rise. This investor normally has no plan to sell the security in the near future. In reference to holding equities, which have an inherent bias to rise, long can refer to a measurement of time as well as bullish intent.
What is a long position in options?
A long position in options contracts indicates the holder owns the underlying asset. A long position is the opposite of a short position. In options, being long can refer either to outright ownership ...
What does it mean to take a long position?
Taking a long position does not always mean that an investor expects to gain from an upward movement in the price of the asset or security. In the case of a put option, a downward trajectory in the price of the security is profitable for the investor.
Why are call options long?
When a trader buys or holds a call options contract from an options writer, they are long, due to the power they hold in being able to buy the asset. An investor who is long a call option is one who buys a call with the expectation that the underlying security will increase in value.
Why do people hold long put options?
The holder of a long put option believes the price of an asset will fall. They hold the option with the hope that they will be able to sell the underlying asset at an advantageous price by the expiry.
Why do people short sell stocks?
Investors who sell stock short typically believe the price of the stock will fall and hope to buy the stock at the lower price and make a profit. Short selling is also used by market makers and others to provide liquidity in response to unanticipated demand, or to hedge the risk of an economic long position in the same security or in ...
What does it mean to be a long position?
Having a “long” position in a security means that you own the security. Investors maintain “long” security positions in the expectation that the stock will rise in value in the future. The opposite of a “long” position is a “short” position. A "short" position is generally the sale of a stock you do not own. Investors who sell short believe the ...
What is short selling?
Short selling is for the experienced investor. Short Sales. A short sale is the sale of a stock that an investor does not own or a sale which is consummated by the delivery of a stock borrowed by, or for the account of, the investor.
What is a broker lending stock?
Brokerage firms typically lend stock to customers who engage in short sales, using the firm’s own inventory, the margin account of another of the firm’s customers, or another lender. As with buying stock on margin, short sellers are subject to the margin rules and other fees and charges may apply (including interest on the stock loan).
How are short sales settled?
Short sales are normally settled by the delivery of a security borrowed by or on behalf of the investor. The investor later closes out the position by returning the borrowed security to the stock lender, typically by purchasing securities on the open market.
What is a short position?
A "short" position is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will decrease in value. If the price drops, you can buy the stock at the lower price and make a profit.
About eLong
eLong, Inc. provides mobile and online accommodation reservations in China. The Company offers consumers an accommodation network of domestic and international properties across the world.
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eLong (NASDAQ:LONG) Frequently Asked Questions
eLong Inc. ADR (NASDAQ:LONG) announced its quarterly earnings data on Wednesday, November, 18th. The technology company reported ($0.66) earnings per share for the quarter, topping the Zacks' consensus estimate of ($0.86) by $0.20.
What is shorting a stock?
Short Stocks. Most people have a notion of what it means to buy a stock. Purchasing a stock is called taking a “long” position, but fewer understand the process of shorting, or taking a “short” position, in a stock. Both practices can earn traders a profit or result in a loss. While both types of trades can be easily executed via online brokerage ...
What is the term for the cash you receive from a long position?
The cash you receive from a sale transaction, minus commissions and fees, is called the sale proceed.
What happens if the price of your shares falls?
If the price of your shares falls a significant amount, your equi ty in your long position might fall below the broker’s maintenance margin. If this happens, your broker makes a margin call that requires you to increase the cash collateral in the margin account.
What is short selling?
Traders often use short selling to hedge other positions. Hedging is an activity in which you buy or short a security to offset the risk of a long or short position in another security. For example, when trading stocks, you might open a short position in the shares of XYZ Corp. to offset the risk of a decline in the price ...
How much margin do you need to trade long?
Federal Reserve Board rules require that you have at least 50 percent initial margin in place for a long trade. That is, you must have enough cash on deposit in the margin account to equal at least half of the shares’ market value.
What happens when you sell all your stock?
When you sell some or all the purchased shares, you reduce or eliminate your open long position. You can select which tax lots to close when you sell less than your full long position, or you can let your broker apply default matching rules.
What is short interest?
At any given time, the number of outstanding short shares on the exchange is called the short interest. In other words, as short interest rises, the higher the number of shares that have been borrowed and sold short on the exchange.
What does it mean to be long in the stock market?
"Long" and "short" refer to whether you've staked your money on a stock's price rising or falling.
What is a long position in stock?
Long Positions. When you're in a long position in a stock, you've bought it expecting the price to go up. In a long position, you run the risk of the stock price falling, in which case your investment will lose money. But your risk is limited to the amount you've invested.
What is short position?
Short Positions. In a short position, you're doing just the opposite: You've got your money riding on the price of particular stock falling. "Going short" is considerably more complicated than going long. First, you borrow some shares of the stock from your broker. Next, you sell those shares on the open market at the market price.
What happens if you short a stock?
Shorting a stock carries potentially catastrophic risks if the price rises instead of falls, so if you're going short, you'd better know what you're doing. Say you sold your borrowed shares for $10 and the price rises to $11 a share. Covering your short will leave you with a loss of $1 a share.
How much can you lose by covering a short?
Covering your short will leave you with a loss of $1 a share. If the stock really goes nuts and jumps to $20, your loss has been magnified to $10 a share. In theory, there's no limit to how much you can lose.
What does "long" mean in stock?
Long means buy or bought. If someone says “I’m long WXYZ stock” it means that person owns (they bought) shares in WXYZ. If someones says “I’m going long WXYZ at $14” it means they intend to buy WXYZ stock at $14. In this case they don’t own it yet, but they plan to.
What does it mean when someone says they are long?
When someone says they are long it usually infers that they believe the stock (or other asset) will rise in value. When you are long (own shares), to exit the position you sell the shares. For example, if you go long 100 shares at $10, you need to sell them at some point to collect your profit.
What does it mean when someone says "I am shorting XYZ stock"?
If someone says “I am short/shorting XYZ stock” it means that person sold XYZ shares without owning them. If someone says “I am going short XYZ at $14” it means they intend to short sell XYZ at $14. You short or short sell assets you believe will fall in value.
What are the two words that describe the long and short term?
Two words related to long and short are “bullish” and “bearish.”. These words also indicate which direction the price of an asset is moving, or which direction a trader thinks it will move. The term bull or bullish comes from the animal, attacking with an upward thrust. Therefore, “bull” means upward trend or price direction.
What does it mean when you sell 100 shares?
When you sell the 100 shares you are “flat.”. Flat means you have no position–you are neither long or short. Selling is flattening or reducing a long position, which is a bit different than going short….
Can you sell Zyz stock at $50?
You can sell the stock at $50 without owning it, and if it drops as expected you will reap a profit. Here’s how…. Assume you sell 100 shares of ZYZ stock at $50, without owning it or having bought it first. In your trading account it will show a negative share position: -100.
What is synthetic long stock?
The synthetic long stock is an options strategy used to simulate the payoff of a long stock position. It is entered by buying at-the-money calls and selling an equal number of at-the-money puts of the same underlying stock and expiration date.
How do dividends affect stock options?
Effect of Dividends on Option Pricing. Cash dividends issued by stocks have big impact on their option prices. This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date.... [Read on...]
What are the Greek alphabets used for in options trading?
In options trading, you may notice the use of certain greek alphabets like delta or gamma when describing risks associated with various positions. They are known as "the greeks".... [Read on...]
Is day trading a profitable strategy?
Day trading options can be a successful, profitable strategy but there are a couple of things you need to know before you use start using options for day trading.... [Read on...]
Long-Term Dividend Stocks
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Long-Term Growth Stocks
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Long-Term Penny Stocks
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Should You Buy Long-Term Stocks?
Long-term investing is expensive since most long-term stocks are costly, with their prices already reaching high numbers.
Where to Buy Long-Term Stocks
Long-term stocks need to be free of the volatility that comes with trading on over-the-counter markets.
Long-Term Stocks: Final Thoughts
While owning shares of a company doesn’t guarantee success, if you have money saved up and want to buy stocks for future returns over the years, these would be some of your best options available today.
What Is A Long position?
Understanding A Long Position
- Investors can establish long positions in securities such as stocks, mutual funds, or currencies, or even in derivatives such as options and futures. Holding a long position is a bullish view. A long position is the opposite of a short position(also known simply as "short"). The term long position is often used In the context of buying an options c...
Types of Long Positions
- In reality, long is an investing term that can have multiple meanings depending on in what context it is used. The most common meaning of long refers to the length of time an investment is held. However, the term long has a different meaning when used in options and futures contracts.
Example of A Long Position
- For example, let's say Jim expects Microsoft Corporation (MSFT) to increase in price and purchases 100 shares of it for his portfolio. Jim is therefore said to "be long" 100 shares of MSFT. Now, let's consider a Nov. 17 call option on Microsoft (MSFT) with a $75 strike priceand $1.30 premium. If Jim is still bullish on the stock, he may decide to purchase or go long one MSFT call …