* Capitalising on Global Events: Traders can respond to news events happening outside regular market hours.
* Access to 24-hour Markets: Especially in FX, crypto, and futures.
* Potential for More Elevated Gains: Due to higher volatility, successful trades may lead to more significant profits.
One overnight trading strategy is to place orders just before the market closes and hold the position until the market opens the next day. Other traders use overnight trading to take advantage of market changes that occur after the markets close. However, keep in mind that overnight trading carries additional risks due to decreased volume, including lower liquidity and increased volatility.
Success in overnight trading demands strategic judgement and adaptability. Traders should stay informed about global developments & news, particularly events occurring after regular trading hours, as these can significantly impact asset prices.
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