Overnight trading (forex night trading).

When trading on the exchange, many traders gradually realize that the number of successful trades depends not only on correctly predicting the trend, but also on the time of day when trading takes place. Therefore, it is sometimes customary to divide the trading process into day and night trading.

Overnight trading (forex night trading) refers to buying or selling currency between 9:00 PM and 8:00 AM local time. However, it's not necessary to carry the trade over to the next day; the key indicator of overnight trading is the time it's executed, not the duration of the trades.

This term means that you simply trade at a certain time of day, and the forex strategy can be absolutely any.

Advantages and disadvantages of Overnight trading.

1. Free time – this type of trading is especially attractive for those who work full-time during the day. After returning home, you can dedicate a few hours to rest and then start making money on Forex.

2. No distractions – no one will call you on the phone at night, and the level of external interference is also reduced. All this allows you to fully focus on work.

3. Choice of trading instrument – ​​night Forex trading, or more precisely, its morning hours, allows you to choose the most popular currency pairs while eliminating the influence of external factors, such as EURUSD, EURGBP, USDCHF, etc.

4. Communication – at this time of day, the load on communication channels is reduced, orders are opened faster, and technical equipment failures are less common.

5. Disadvantages – speaking of disadvantages, the main one is the state of your body; after all, most people are used to resting at night. It is also worth noting that not all Forex brokers provide 24/7 customer support.

Peculiarities of night trading on Forex.

1. Forex trading sessions – trading at this time takes place during the American and Asian trading sessions, this fact leaves its mark on the choice of trading instrument and the working strategy itself.

2. Trading instrument – ​​it all depends on how risky forex tactics you have chosen to help you:

• Risk and high profitability – currency pairs AUDJPY, USDJPY, EURJPY, GBPJPY, EURUSD are suitable for this option.

• Calm trading with low risk – we choose those currency pairs for which the appearance of news EURCHF, EURGBP, GBPCHF is excluded at this time.

3. Strategy – you can trade at night on forex using almost any trading strategy – scalping, channels, breakout, levels, support and resistance lines, etc.
4. Swap – be careful, if you opened a deal before 24 hours and close it the next day, a swap commission will be added to the spread amount, regardless of the duration of the deal. Therefore, before starting trading, you should find out from your broker their time zone and the time at which this commission is charged, and close all transactions before this time.

Night trading on Forex is no better or worse than intraday trading at other times of the day; it's simply a different time frame for conducting trades, so there's no need to specifically switch to overnight trading if you have the opportunity to trade during the day.