Overnight Position in Forex
A clear definition of Overnight Position, with practical context for reading markets and making better trading decisions.
Definition
Definition
An overnight position is a position that remains open beyond the market's or broker's defined trading-day cutoff. In forex, carrying a position through the rollover point can create a financing debit or credit.
How It Works
Timing can change market conditions and financing. A position held across a cutoff or a transaction with two settlement dates can behave differently from a same-session trade.
Why It Matters
Recognizing the timing term helps you understand why a position, fee, or market condition may change even when your directional view has not.
Key Takeaway
An overnight position is a position that remains open beyond the market's or broker's defined trading-day cutoff.
Practical forex example
Why Overnight Position matters
Understanding Overnight Position helps traders interpret market information, plan decisions, and manage risk with more context.
Related forex terms
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