Series 24: Long Positions In Margin Accounts

Long Positions in Margin Accounts

When a customer buys 1000 shares on margin, we say that the customer is “long” 1,000 shares. This conveys the customer’s ownership of those shares. If she were to purchase another 1,000 shares, she would now be “long” or have a “long position” of 2,000 shares. She owns the shares because she bought them, even though they are not yet fully paid for.