To go long ~ verbTo be in a financial position dependent
on rising prices for profit
Why go long?
You think a certain share is going to rise in price. With spread betting, you can easily profit should your view be proved correct. Unlike conventional share trading though, you invest a fraction of your capital and you pay NO Capital Gains Tax* on your profits.
To go long, you would just execute a buy trade on our live quoted price. If the share does rise in value, as you predicted, simply close your spread bet at the higher price. You profit from the difference between the price at which you went long and the price at which your trade was closed.
In today's credit crunch environment it can be helpful to release investment money tied up in shares and assume the same exposure via a long spread bet, for a fraction of the expense, hence releasing the remaining capital for alternative use.
*Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
