Asia Global Holdings Corp. (fka AAGH)

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You are correct for using the trade date when computing gains and losses on stock sold when holding a long position in stock. The settlement date is used instead of the trade date for computing gains and losses when one is short a stock. Therefore, you can sell your long postion on the last day of trading year and you need to sell your short position in time for the typical 3 day settlement time to occur for tax purposes for that respective year.