An overnight position is a trading position that remains open at the end of a trading day and is held overnight into the next trading day. In forex trading, currency positions are usually rolled over at the end of each trading day, with the associated interest rate differential being either credited or debited to the trader’s account. The overnight position can result from either a long or short position, and the trader will usually pay or receive financing costs depending on the prevailing interest rate differential between the two currencies involved in the trade. It is important to note that holding an overnight position can expose traders to additional risks, such as overnight volatility or unexpected news events that could affect the price of the traded instrument.