A term used in financial markets such as stocks, foreign exchange or futures: buying and holding stocks, foreign exchange or futures, waiting for them to rise and make a profit. Long is long. When bulls judge that the market is rising, they will buy stocks immediately, so long means buying stocks, foreign exchange or futures.

example

Example: The soybean price is 4,500 yuan/ton, and Party A thinks that the soybean price will rise the next day. Well, Party A will buy 1 lot soybean contract (i.e. 10 ton). By the next day, if the price of soybean really rises to 5000 yuan/ton, he will sell this 1 hand soybean at the price of 5000 tons.

And how much principal does he need to buy 1 hand soybeans? Because in the futures market, you don't need the full amount, you only need to pay a part of the deposit. For example, the margin ratio of soybeans is 8%, so if A wants to buy 1 hand soybeans, he actually only needs to pay 8% of 45,000, which is 3,600 yuan. In this way, with the principal of 3600 yuan, I earned 5000 yuan more in one day.