Overnight Position


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.

BREAKING DOWN '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.

  1. Risk Management

    The process of identification, analysis and either acceptance ...
  2. Transaction Exposure

    The risk, faced by companies involved in international trade, ...
  3. Foreign Exchange Risk

    1. The risk of an investment's value changing due to changes ...
  4. Forex - FX

    The market in which currencies are traded. The forex market is ...
  5. Position

    The amount of a security either owned (which constitutes a long ...
  6. Overnight Trading

    The buying or selling of currencies between 9pm and 8am local ...
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