Notices

Overnight position

From Traderpedia

(Difference between revisions)
Revision as of 15:38, 15 September 2005 (edit)
Rhody Trader (Talk | contribs)
m
← Previous diff
Current revision (12:47, 4 October 2005) (edit) (undo)
Rhody Trader (Talk | contribs)
m
 
Line 2: Line 2:
Holding a trade overnight usually means maintaining a [[position]] with market exposure when the [[market]] in question is closed. Overnight positions as a result carry a higher degree of [[risk]], and are therefore subject to higher [[margin]] requirements dictated by the exchange, as opposed to [[day trading|daytrade]] margin which is lower. Holding a trade overnight usually means maintaining a [[position]] with market exposure when the [[market]] in question is closed. Overnight positions as a result carry a higher degree of [[risk]], and are therefore subject to higher [[margin]] requirements dictated by the exchange, as opposed to [[day trading|daytrade]] margin which is lower.
 +
 +[[Category:Terms]]

Current revision

Definition:
Any trade that is active from one trading day to the next.


Holding a trade overnight usually means maintaining a position with market exposure when the market in question is closed. Overnight positions as a result carry a higher degree of risk, and are therefore subject to higher margin requirements dictated by the exchange, as opposed to daytrade margin which is lower.