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Holding Period. Share. What is a 'Holding Period'. A holding period is the real or expected period of time during which an investment is attributable to a particular investor. In a long position, the holding period refers to the time between an asset's purchase and its sale.
The formula for the holding period return is used for calculating the return on an investment over multiple periods. The returns on an investment may be shown on an annual, quarterly, or monthly basis. An individual may be tempted to incorrectly add the percentages of return to find the return over the multiple periods.