Sellers who sell equity shares listed on a stock exchange within 12 months of purchase may realize a short-term capital gain (STCG) or suffer a short-term capital loss (STCL). A short-term capital gain occurs when shares are sold at a higher price than the price at which they were purchased. Generally, a short-term capital gain is calculated as the difference between the sale price and the sale expenses, minus the purchase price.

Short-term investments, such as trading stocks, forex, or cryptocurrencies, can yield quick profits by capitalizing on market volatility. These gains are typically realized within days, hours, or even minutes, making them attractive for active traders. Strategies like day trading, scalping, and swing trading focus on exploiting small price movements for rapid returns. However, short-term gains often come with higher risk due to market fluctuations and require strong technical analysis skills. Additionally, they may be subject to higher tax rates compared to long-term investments, depending on the jurisdiction. While the potential for fast profits is appealing, disciplined risk management is crucial to avoid significant losses. Successful short-term investing demands constant market monitoring, quick decision-making, and emotional control to capitalize on fleeting opportunities.