Crystallisation definition

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Crystallisation is the term used when a trader or business closes a position and then reopens an identical position immediately.

In doing so, they are able to balance out the net value of their assets by quickly realising a loss or profit, without losing the position that they believe can still bring more profit. Mostly this is done for tax purposes: allowing a trader to realise a capital loss and pay any charges on it immediately.

Most countries have tax regulations in place to prevent the practice of crystallisation. 

Visit our shares education section

For more on how to take tax and charges into account when trading, read our guide to developing a trading plan.

Contact us

We're here 24hrs a day from 7pm Saturday to 9am Saturday (AEDT).

1800 601 734

You can also call +61 (3) 9860 1734, email or tweet us at @IGClientHelp