The phrase "going long" is commonly used in the context of finance and investing to refer to purchasing a security with the expectation that its price will rise over time. Its spelling follows the traditional English pronunciation where the "o" in "going" produces an /oʊ/ vowel sound and the "ng" is /ŋ/. The word "long" has a long "o" sound /lɔːŋ/ and a silent "g". Together, the phrase is pronounced /ɡoʊɪŋ lɔːŋ/.
Going long is a term commonly used in the financial markets, specifically in trading and investing. It refers to a bullish strategy where an individual or entity holds a position in an asset with the expectation that its value will increase over time. Essentially, going long means buying an asset with the intention of selling it at a higher price in the future to realize a profit.
When an investor goes long, they typically purchase shares of a stock, contracts, or other financial instruments with the anticipation that the value of the asset will appreciate. The strategy involves holding onto the asset for an extended period, also known as a long position, until the investor deems it is an opportune time to sell.
Going long is often contrasted with going short, which is a bearish strategy. While going long is based on optimism and the belief in an asset's value growth, going short involves selling borrowed assets with the expectation that their value will decline, allowing them to be repurchased at a lower price to make a profit.
Traders and investors employ the going long strategy across different asset classes such as stocks, commodities, currencies, and derivatives. It requires careful analysis, market research, and risk management to effectively execute and capitalize on potential price increases.
The term "going long" originates from the field of finance and investing. The word "long" in this context refers to buying or owning an asset, such as stocks, bonds, or commodities, with the expectation that its value will increase over time.
The origin of the term can be traced back to the practice of physically holding or "going long" on a stock certificate or bond. When an investor believed that the price of a security would rise, they would purchase it with the intention of selling it at a later date for a profit. Holding the asset for an extended period, or going long, became known as taking a long position.
Over time, the term has become more abstract and is now used more broadly in financial contexts to signify any investment strategy that anticipates an asset's value will rise.