What is Ordinary Income? A Guide to Forex Trading

What is Ordinary Income? A Guide to Forex Trading

When it comes to the concept of foreign exchange (FX) trading, one of the most important terms to understand is ordinary income. In this article, we’ll explain what ordinary income is in the context of FX trading and how it can impact your trading decisions. Ordinary income is the income that is not subject to any type of special tax treatment or tax-deductible expenses. It is the amount of money an individual or business has earned from any source of income such as wages, salaries, interest, dividends, rents, capital gains, pensions, or other income. Generally, ordinary income is taxed at the taxpayer’s individual rate, regardless of where the income is generated or where the taxpayer resides.