Glossary entry
An overnight position remains open beyond a trading session's close or a provider's daily cutoff. It exposes the holder to developments occurring before the next opportunity to transact. Depending on the instrument, the position may also attract financing or different margin requirements. Markets operating across time zones can have several relevant session boundaries.
Illustrative example
A share position held after the exchange closes may encounter a price gap the next morning if the company announces unexpected news during the night.
What to consider
A market reopening beyond a stop level can produce a worse execution price. Check session hours and any applicable holding charges.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.