Decoded Intelligence Signal
Overnight Risk
advanced
strategy
Verified: May 27, 2026Lexicon Core Definition
The exposure created by holding an open trading position when markets are closed — including the risk of gap opens caused by news events, regulatory announcements, or broader market developments that occur outside trading hours. Overnight risk is managed through conservative position sizing (1–1.5% per trade) and hard stop-loss orders that execute automatically on the next open.
Analysis Breakdown
The exposure created by holding an open trading position when markets are closed — including the risk of gap opens caused by news events, regulatory announcements, or broader market developments that occur outside trading hours. Overnight risk is managed through conservative position sizing (1–1.5% per trade) and hard stop-loss orders that execute automatically on the next open. Full explanation coming soon when Journey 18 content is ingested.