Tomorrow Next - Tom Next
In currency transactions, the purchase and sale of a currency made to avoid taking actual delivery of the currency. The current position is closed out at the daily close rate and re-entered at the new opening rate the next trading day. Also referred to as 'tomorrow next procedure'.
Investopedia Commentary
Delivery in most currency trades is two days after the transaction date. Tomorrow-next trades arise because most currency traders are speculators and have no intention of taking delivery of the currency. If a trader buys and closes out his or her currency position the same business day, there isn't a problem with delivery. But traders who wish to hold their position over the current business day and have no intention of accepting delivery of the currency would use tomorrow-next procedures: the position is closed out that business day at a closing rate, and then the position is reestablished the following day. This allows the trader to hold the position for that day without worrying about delivery.
Related Links
A Primer On The Forex Market
The Fundamentals Of Forex Fundamentals
Getting Started In Forex