Trading Profit

Trading profit

The profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates.

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Trading Profit

The profit that an investor derives from buying and selling short-term securities, or those that the investor holds for less than one year. Trading profits can be substantial if the investor knows what he/she is doing, but there is a good deal of risk involved. Governments often seek to encourage long-term investment at the expense of short-term, and because of this, trading profit is usually taxed at the (higher) income tax rate instead of the capital gains rate.

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trading profit

The income derived from buying and selling a security at a profit within a relatively short-term period.