What are overnight vs. intraday positions?

Asked 4 years ago

Hi, what is an intraday position, and overall do traders hold positions overnight? Meaning, can I buy the stock today and sell it tomorrow? Oh, and even if I held the stick for the next day, would I still have buying power? Thanks in advance.

Intraday position Overnight position Position trading

Andrew Moran

Monday, September 27, 2021

Yes,  you can buy shares in a stock today, hold positions overnight, and then hit the "sell" button the next day (either market or limit order).
For intraday trading, this is an open position in the stock and forex market that was created during the session and then liquidated by the end of the trading day. This is common for traders of all stripes.
For overnight trading, this is when you have positions in a stock opened for multiple sessions and nights. Your buying power will depend on how the stock trades in after-hours and pre-market and then where it opens at the opening bell.