Overnight Position

AAA

DEFINITION of 'Overnight Position'

Trading positions not closed by the end of the trading day and held overnight. For securities trading, overnight positions expose the investor to risk because a number of events can negatively impact a position while the trading floor is closed.

INVESTOPEDIA EXPLAINS 'Overnight Position'

In forex trades, 5pm EST is considered the end of the trading day. Positions opened at 4:59pm EST and closed at 5:01pm EST are considered overnight positions because a new "day" begins after 5pm. Rollover interest is paid out or received on overnight positions based on the closing interest rate.

RELATED TERMS
  1. Risk Management

    The process of identification, analysis and either acceptance ...
  2. Forex - FX

    The market in which currencies are traded. The forex market is ...
  3. Transaction Exposure

    The risk, faced by companies involved in international trade, ...
  4. Position

    The amount of a security either owned (which constitutes a long ...
  5. Foreign-Exchange Risk

    1. The risk of an investment's value changing due to changes ...
  6. Overnight Trading

    The buying or selling of currencies between 9pm and 8am local ...
Related Articles
  1. The Fundamentals Of Forex Fundamentals
    Forex Education

    The Fundamentals Of Forex Fundamentals

  2. A Primer On The Forex Market
    Options & Futures

    A Primer On The Forex Market

  3. Top 7 Questions About Currency Trading ...
    Forex Education

    Top 7 Questions About Currency Trading ...

  4. 8 Basic Forex Market Concepts
    Forex Education

    8 Basic Forex Market Concepts

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center