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A time horizon is the length of time over which an investment is made or held before it is ended. Time horizons can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor or an individual who is investing in a retirement plan.

In finance, a time horizon is the length of time that someone has in order to invest money. For example, less than 5 years is considered short term and more than 10 years is considered long term. The shorter the horizon, the less risk that you can accept.