What is Overnight Trading?

Simply, overnight trading can be defined as the trading in night hours. The trades take place local time between 9pm and 8am. In an another way overnight trading is the trades which are not liquidated in the same trading session. Overnight trading can be considered as the offspring of direct access trading.

Overnight trading can be done for stock, futures or forex currencies. The major application is in forex market. Because of the access to all international markets, a forex trader can trade around the clock, even his/her local currency market is closed. These overnight currency trades are executed on early morning of next day or evening of same day.

Overnight trading of stocks and futures also follows the same process. Here overnight trading is available for international traders, usually trading with international trading account and international trading system. These trading systems can provide charts, news, indicators and alerts as a normal trading system. Like day trading, overnight trading is only for dedicated traders, who are willing to take risk, as things can change drastically with the opening of market in next day.

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