stock trading FAQ's

Why Don’t Day Traders Hold Positions Overnight?

Day traders typically do not hold positions overnight for a number of reasons: Most brokers have higher margin requirements for overnight trades, and therefore additional capital is required; a stock can gap down or up on overnight news, inflicting a big trading loss; and holding a loss-making position overnight in the hope that part or all of the losses can be recouped may violate the trader’s core day-trading philosophy.

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