Long Position Explained: A 2025 Guide for Australian Investors

‘Going long’ is a term you’ll hear tossed around by finance professionals, but it’s not exclusive to market wizards or day traders. For Australians navigating the ever-shifting investing landscape of 2025, understanding what it means to take a long position—and why it still matters—can be a powerful tool for building wealth.

What Does ‘Going Long’ Really Mean?

At its core, taking a long position means you buy an asset (like shares, ETFs, or even cryptocurrency) because you believe its price will rise over time. You’re betting on growth, and your profit comes from selling the asset at a higher price than you paid. In the Australian context, this can apply to ASX-listed stocks, property trusts, managed funds, and more.

• Example: You purchase 100 shares of CSL Limited at $250 each, expecting the company’s value to increase over the next year. If CSL rises to $300, your long position nets you a $5,000 gain (excluding brokerage and taxes).

• Contrast: This is the opposite of ‘shorting’, where investors profit if the asset price falls.

Why Long Positions Still Matter in 2025

The investing world is evolving rapidly, but the long position remains the foundation of most investment portfolios. Here’s why it’s especially relevant for Australians this year:

• Favourable Tax Treatment: Under the current capital gains tax (CGT) rules, assets held for more than 12 months may qualify for a 50% CGT discount, rewarding patient long-term investors.

• Superannuation Strategies: Super funds are legally required to invest for members’ retirement, making long positions the norm for Australian superannuation portfolios.

• Market Optimism: Despite global volatility, the Reserve Bank of Australia’s 2025 outlook projects modest economic growth and stabilising inflation, encouraging many to remain invested for the long run.

How to Take a Long Position in 2025

With digital platforms and micro-investing apps, going long has never been easier—or more accessible. Here’s how Australians are taking advantage of long positions this year:

• Direct Shares: Using platforms like CommSec, SelfWealth, or Superhero, investors can buy ASX or international shares outright and hold them for future gains.

• Exchange-Traded Funds (ETFs): Popular with young investors, ETFs provide instant diversification and can be held long-term with low fees.

• Property Trusts and REITs: As the housing market rebounds in 2025, listed property trusts offer a ‘long’ stake in real estate without the need for a massive deposit.

Regardless of the asset, the long position means you’re in it for the potential appreciation—not just a quick flip.

Risks and Rewards: What to Watch Out For

While long positions have historically been the backbone of wealth creation, they aren’t risk-free:

• Market Downturns: If asset prices fall, your capital is at risk. The ASX200, for example, can have years of negative returns, as seen during the 2020 pandemic and the 2022 tech correction.

• Patience Required: Long positions may take years to pay off, which isn’t ideal if you need liquidity in the short term.

• Policy Changes: Keep an eye on updates to capital gains tax or superannuation rules. In 2025, the federal government has flagged potential tweaks to CGT exemptions for investment properties, which could affect long-term strategies.

Smart investors manage these risks by diversifying, setting clear goals, and staying informed about policy and market trends.

Final Thoughts: Is a Long Position Right for You?

For Australians focused on steady growth, tax efficiency, and building wealth over time, taking a long position remains a tried-and-true approach. With updated digital tools and evolving policy incentives in 2025, going long can be more accessible and rewarding than ever—provided you’re clear on your goals and understand the risks.