MinaraBlog

Overnight Risk

Intro

Carrying positions overnight has cost and gap risk—plan for swaps, funding, and event windows.

Step-by-step

  1. Check upcoming events and market hours before carrying a position.
  2. Size smaller for overnight holds and keep wider stops for gap risk.

GOLD example

A long XAU/USD position through a major central-bank meeting faces gap risk; reduce size or hedge with options.

Author: Rahul Mehra