Tomorrow Next Day (Tom Next)
The act of rolling over the currency is known as “tom next”, which stands for tomorrow next day, and is basically part of the forex rollover process. Off-exchange foreign currency trades typically settle two days after the transaction is initiated. However, traders typically do not want to do this (avoiding actual delivery of the currency).
Spot Next
This is currency to be delivered the day after the delivery date (also known as the spot date or value date). Spot means “immediately”. One could said, “He overnight swapped from the spot date to the next business day.“
In Spot forex, the majority of the time the end of the business day is 21:59 (London time). Any positions still open at this time are automatically rolled over to the next business day, which again finishes at 21:59.
Study Guide >> Definitions and Terminology >> Tom Next and Spot Next
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