Overnight Forex Position

An Overnight Forex Position is a Forex trading strategy in which the trader enters into one or more trades at the beginning of the trading day, holds the position overnight, and exits the position early the next morning.

The Overnight Forex Position is especially effective in the US markets where the beginning of the Forex trading day is in the early evening for most of the US.  At this time the Asian markets are just starting to open up, with trading in Japan, Australia, and New Zealand.  The US trader will then read the market information that is being generated from Asia as well as the European and US futures data and decide on the directions of Forex pair trades.  Overnight, the European markets will open (around 1-2AM Eastern Time) and then the US markets will open up (around 6-8AM Eastern Time.)  The trader will check his trades in the early morning US time, and close them out with either a gain or a loss.