Short-Term Capital Gains (STCG)

Short-term capital gains (STCG) apply when you sell an investment within one year of purchase. These gains are usually taxed at higher rates than long-term gains.

In most countries, STCG is taxed at your ordinary income rate. For high earners, this can be 35-40% or more, compared to 15-20% for long-term gains.

Day traders and active investors need to carefully track STCG as frequent trading can create significant tax liabilities.