The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Capital gains are the profits made from the buying and selling of assets. They are made when traders sell assets – like shares or commodities – for more than they originally paid for them.

Capital gains definition

Capital gains are the profits made from the buying and selling of assets. They are made when traders sell assets – like shares or commodities – for more than they originally paid for them. The opposite of a capital gain is a capital loss.

Both capital gains and capital losses are only realised by traders when their position is closed and profit or loss is taken. When a capital gain is realised, it is subject to capital gains tax.

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