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Trends & Analysis
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Trends & Analysis
News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

Overnight limit definition

An overnight limit is a trading restriction that sets the maximum amount of a specific security that a trader is allowed to hold in their account overnight. This limit is typically set by the trader’s broker, and the amount can vary depending on the trader’s account size and tier, trading experience, and the security being traded, such as specific stocks, commodities, or currency pairs.

Why do brokers set overnight limits?

The purpose of setting overnight limits is to help traders manage risk. When traders hold too much of a single security for an extended period, they may incur substantial losses if the market suddenly moves against their position overnight. By setting an overnight limit on traders’ accounts, brokers can help them minimise risk and protect them against potential losses.

Where do traders encounter overnight limits?

Traders may encounter overnight limits set by their brokers when trading derivatives such as futures and options. This is because traders tend to hold positions for a long time in futures and options trading. In this case, the broker can limit the number of contracts a trader can hold to manage their risk. If the trader exceeds this limit, they may be subject to additional fees, or their positions may be closed out by their broker.

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.