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Overnight Position Definition

An overnight position is a trade that remains open past the close of the trading day into the next session.

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What is an Overnight Position?

Holding a position overnight may incur or earn financing charges, known as swap or rollover fees, depending on the instrument and direction.

It also exposes the trader to potential price gaps caused by news released outside market hours.

Example of Overnight Position

A trader who buys a stock and does not sell it before the market closes is holding an overnight position.

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