What is medium term

Medium term refers to a period of time that falls between the short term and the long term. It is an intermediate holding period or investment horizon, and the exact length of time can vary depending on personal preferences and the asset class being considered. In the fixed-income market, medium-term bonds have a maturity period of 2 to 10 years. For example, a day trader might consider a stock held for a couple of weeks as a medium-term position, while a long-term investor might define medium term as a holding period of 1 to 3 years. The terms short term and long term are also relative and can vary based on individual goals and risk tolerance.