Posted in Marketing and Strategy Terms, Total Reads: 435
Definition: Tomorrow Next
Tomorrow Next (or Tom Next) is a foreign exchange trading strategy that is made to avoid taking the actual delivery of the currency. It is achieved by a careful arrangement of the closing position and the opening positions that is associated with the investment.
Delivery is two days after the transaction in most of the currency transaction. Most traders who are trading in currency are speculators and they have no intention of taking the delivery of the currency and that’s why Tom Next trade arises. Traders who want to hold their position and have no intention to get the delivery the same business day opt for tom next trading in which, the current position is closed at the daily close rate on that business day and then reopened at the same position the following day.
Because of this procedure, investors get the chance to get an attractive ROI without ever receiving the currency.