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Quantitative Finance · Glossary

What is Overnight reversal?

Definition 2.3 Strategies I: Equities and Futures · Chapter 2 — Short-Term Reversal

Overnight reversal is the tendency of a stock’s overnight return, from the previous close to the open, to be partly reversed during the following trading session, and of its trading-session return to be partly reversed overnight; a strategy on it trades between the two parts of the day.

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