Popular Terms
Amount remaining after all deductions from, or adjustments to, a gross figure have been made.

Gross Weight vs Net Weight in Your Portfolio

The weight of your assets is the amount of each security in your portfolio relative to the entire portfolio. Weight changes depending on whether you're selling short or long. With a little practice, it's easy to tell the difference between gross weight vs net weight.

Gross Weight

Gross weight is easy to determine. If you have a portfolio that consists of $13,000 long and $3,000 short positions, then you have a total investment of $16,000.

The gross weight of your long position is 81.25%, and the gross weight of your short position is 18.75%. In order to find gross weight, you need to divide the amount of any given security by the amount of total securities held. It's up to you whether you want to use dollar values or shares as the metric for comparison.

Net Weight

Net weight is slightly more complicated to figure. In our example, we have a portfolio with $3,000 long and $2,000 tied up in short positions. In this case, the net weight of our long positions is +130 and the net weight for our short position is -30. The net weight is based on the total value of your portfolio, and looks at long investments as positive and short investments as negative. The two numbers will always add up to the net of 100.

Use 'net' in a Sentence

The company earned $100,000 in total revenue for the fiscal year and paid $80,000 in total expenses, leaving a net profit of $20,000
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A young college graduate was ecstatic when she discovered how much she will earn in her chosen career. She had forgotten that after taxes she would only receive the net or what is left after taxes. She never thought about working in a state with lower taxes.
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Randy couldn't wait to get his first paycheck, but he was surprised by the difference in the gross amount of his pay (before deduction of taxes and any other payments) versus the net amount (after deduction of those items).
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