overnight trading

Overnight positions, in the context of trading, denote those trades that remain open and unliquidated at the close of a trading day. This practice is notably prevalent among swing traders, aiming for continuous trades lasting a few days, and long-term traders who maintain positions for extended periods, ranging from weeks to months. Conversely, day traders often eschew overnight positions due to specific challenges, which we will delve into later in this article.

In the dynamic world of financial markets, understanding the intricacies of trading positions is crucial for investors and traders alike. "What is an overnight position?" is a question that often arises, and it signifies a pivotal aspect of trading. An overnight position is a trade initiated during the day that remains open and active while you sleep, hence the name. While this concept is simple in definition, its implications can be profound.

According to some participants of the forex market, night trading is impossible. Indeed, market activity is very low compared to the daytime, but it is this moment that allows you to place the most profitable trades. The reason for this is the benefits of a low activity state of most players in the financial markets.