# Cryptoasset derivatives (CFDs, Futures and Margin Trading)

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### Crypto margin trading, futures and other CFDs <a href="#crypto-margin-trading-futures-and-other-cfds" id="crypto-margin-trading-futures-and-other-cfds"></a>

Individual traders will pay capital gains tax on any margin trades or other CFDs. When you open a new position, you pay no tax, however, when this position closes you realise a capital gain or loss and a taxable event occurs. The same short-term and long-term Capital Gains Tax rates apply to these transactions.

When it comes to **crypto futures** - if you're trading regulated crypto futures, you can apply the 60/40 rule to get a more favourable tax treatment. This is because of the IRS [60/40](https://www.law.cornell.edu/uscode/text/26/1256) rule. This rule allows investors to treat 60% of their gains as long-term gains and 40% as short term gains regardless of how long a position is kept open. The vast majority of crypto futures are (as-yet) unregulated and as such these rules cannot be applied.

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