Does a Contract for Difference (CFD) Have a Holding Period for Tax Purposes?

Yes, a Contract for Difference (CFD) is typically treated as a standard capital asset, similar to a security, in jurisdictions where they are legal. The holding period begins upon opening the contract and ends upon closing it.

The resulting gain or loss is classified as short-term or long-term based on whether the holding period is one year or less or more than one year, respectively.