We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Tomorrow Next Trade?

Malcolm Tatum
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A tomorrow next trade is a foreign exchange trading strategy that is arranged to render the actual delivery of a currency unnecessary. This is accomplished by a careful arrangement of the closing and opening positions associated with the investment. Thus, the investor has the potential to realize an attractive return on the investment without ever receiving the currency proper.

The key to an effective tomorrow next trade is to make sure the current position is closed out at the daily close rate applicable for the current day of trading. At the same time, the investor arranges for the currency to be re-entered at a new opening rate at the beginning of the next trading day. This allows the chance to engage in speculation based on calculated projections of the performance of the currency. If the approach works to the advantage of the investor, the end result is a sizable return on the investment without ever having to accept delivery on the currency in question.

The reason that a tomorrow next trade is possible has to do with the usual delivery date on acquire currency. In most foreign exchange markets, the process requires two trading days. This means if the investor can acquire the currency today and set up a tomorrow next trade to take advantage of a rise in the value on the following trade day, the need for delivery becomes moot.

Market speculators often make use of a tomorrow next trade as a way to quickly turn over investments in a Forex market. At the same time, the use of a tomorrow next trade is a great way to hold onto a valuable asset for an extended period of time without accepting delivery. All that is required is to close out the current position at the end of the trading day and re-establish a new position on the following trading day. The action effectively nullifies the previous delivery date and sets a new one. An investor using this strategy can thus hold on to the currency as long as he or she likes to make a reasonable return, then simply sells off the investment.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.