When a trader buys an asset they become long the asset and hope to profit from an increase in price.
Other Trading Basics
Capital Gains Tax
A tax on the profits obtained from a capital investment or transaction.
Orders that instruct a broker to another action if filled. The typical action is to place a stop or limit order on the trade.
Bottom Up Analysis
A form of fundamental analysis which starts with analysis of the individual parts.
Bottom up analysis of an index would involve the analysis of each company in that index.