overnight position(redirected from Overnight Positions)
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The position that a broker-dealer has at the end of a trading day. A large overnight position, either long or short, exposes the broker-dealer to the risk that events or after hours trading between the close and open of an exchange will negatively impact the price at the open. However, this risk is primarily relevant only when the overnight position is intended for the short-term.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A broker-dealer's net security position at the end of a trading day. A large overnight position leaves the broker-dealer vulnerable to events occurring before the market opens the next day.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.