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Short-Term Gain

Definition

Short-term gain refers to the profit realized from the sale of an asset that has been held for a relatively brief period, typically one year or less. This financial concept is significant for tax purposes, as short-term gains are often taxed at higher rates than long-term gains. In the digital asset market, it applies to profits from quick trades of cryptocurrencies or NFTs. Investors frequently aim for short-term gains through active trading strategies.