Holding Period Definition

The holding period is the length of time an investor keeps a position before closing it.

What is a Holding Period?

Holding periods can range from seconds in scalping strategies to years in long-term investing.

The length of the holding period can affect costs such as overnight financing charges and, in some jurisdictions, tax treatment.

An investor who buys shares and sells them five years later has a five-year holding period.

Hawkish describes a central bank or policymaker stance that favors higher interest rates to control inflation.

A hedge fund is a pooled investment vehicle that uses a range of strategies, often including leverage and derivatives, to generate returns.

Hedging is a risk management strategy used to offset potential losses in one position by taking an opposite position in a related asset.