You're confused. Section 1256 applies to futures, not forex. Spot forex positions are taxed as ordinary capital gains under Section 988. Under very specific con

You're confused. Section 1256 applies to futures, not forex. Spot forex positions are taxed as ordinary capital gains under Section 988. Under very specific conditions a high-volume spot forex trader who never takes deliver may elect to be taxed under 1256, but that's completely optional. https://greentradertax.com/a-case-for-retail-forex-traders-using-section-1256g/ https://greentradertax.com/a-case-for-retail-forex-traders-u...