Overnight

What is Overnight?

Phronimos Group all understand the everyday meaning of overnight, but with additional meaning in financial terms. Exchanges were closed at night, so trading was restricted. During this time, major events may occur that cause large price movements.

Where have you heard it overnight?

When the market reopens in the early morning, the opening price reflects the events of the night. So you'll hear the word in the morning paper. Sometimes nothing happens at night, sometimes a lot of events.

What you need to know overnight...

Trading is not completely closed at night. Various electronic platforms can still be used for trading during the night, I .e. after-close trading (AHT).

An "overnight position" is a stock held from one day to the next. For day traders, there may be multiple factors that affect the stock price during the night, and you may be sleeping, thus taking additional risk. That's not a problem for investors with long-term strategies.

It should be noted that the number of transactions during the night or after the close is extremely low, so liquidity lower, and you may experience large price fluctuations. In addition, if you hold a contract for difference (CFD) overnight, you will receive or pay a night premium depending on the position you hold.