What Is the Maximum Holding Period for a Short-Term Capital Gain?

The maximum holding period for a short-term capital gain is one year or less. A gain or loss is considered short-term if the asset (in this case, the derivative contract) is held for exactly one year or less from the day after the acquisition date.

If the asset is held for more than one year (i.e. one year and one day or longer), the resulting gain or loss is classified as long-term.