What Are Capital Gains? A Guide to Forex Trading

For many traders, capital gains are an important measure of success when it comes to investing in the foreign exchange (forex) market. Capital gains refer to the profits made from investments, and forex trades are no exception. In this article, we’ll look at what capital gains are in the forex market, how profits are realized, and the advantages of capital gains investments. Capital gains are the profits from investments that are realized when the assets or securities are sold for a price higher than the purchase price. Investments can include stocks, bonds, real estate property, limited partnerships, and mutual funds. Any profits earned from the sale or exchange of these assets are considered capital gains and are subject to taxes. Most investments are subject to capital gains tax, though there are certain exceptions, such as Roth IRAs, where capital gains and profits are tax-sheltered.