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Overnighting

In trading, the term overnighting denotes the practice of holding an open investment position after the corresponding exchange has closed at the end of a trading day.

When you trade using leverage – which is often the case in forex and CFD trading – interest may be charged on the financing provided by your broker when you hold an open position overnight.

See also: Rollover; day trading

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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