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Definition of 'Tomorrow Next - Tom Next'
In currency transactions, the purchase and sale of a currency made to avoid taking actual delivery of the currency. The current position is closed out at the daily close rate and re-entered at the new opening rate the next trading day. Also referred to as "tomorrow next procedure".
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Investopedia explains 'Tomorrow Next - Tom Next'
In most currency trades, delivery is two days after the transaction date. Tomorrow-next trades arise because most currency traders are speculators and have no intention of taking delivery of the currency. If a trader buys and closes out his or her currency position the same business day, there isn't a problem with delivery. But traders who wish to hold their position over the current business day and have no intention of accepting delivery of the currency would use tomorrow-next procedures: the position is closed out that business day at a closing rate, and then the position is re-established the following day. This allows the trader to hold the position for that day without worrying about delivery.
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Search results for 'Tomorrow Next (Tom Next)'
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http://www.investopedia.com/ask/answers/06/rollover.asp
... Often referred to as tomorrow next, rollover is useful in FX because many traders
have no intention of taking delivery of the currency they buy - rather, they ...
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http://financialedge.investopedia.com/financial-edge/0410/6-Career-Killing-Facebook-Mistakes.aspx
... Statuses You Wouldn't Want Your Boss to See Everyone should know to avoid statuses
like "Tom plans to call in sick tomorrow so he can get drunk on a Wednesday. ...
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http://financialedge.investopedia.com/financial-edge/0810/Top-5-Ways-To-Budget-For-A-Baby.aspx
... Unless you're Tom Cruise and Katie Holmes, you should probably stick ... save for your
child's college education today without sacrificing financial aid tomorrow. ...
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