Are there rules about holding trades overnight in prop trading?
Some prop firms restrict or discourage holding positions overnight due to swap fees and gap risk at market open. Others offer swap-free accounts to accommodate overnight traders. Always check the firm's overnight policy before placing longer-term trades.
Are there rules about holding trades overnight in prop trading?
Some prop firms restrict or discourage holding positions overnight due to swap fees and gap risk at market open. Others offer swap-free accounts to accommodate overnight traders. Always check the firm's overnight policy before placing longer-term trades.
Key Points
- Some firms prohibit overnight holding on certain account types
- Swap charges apply to overnight positions at most firms
- Swing-friendly firms explicitly allow overnight holding
- Gap risk at market open is the main concern for firms
- Swap-free options available at select firms for Islamic accounts
Firm Comparison
| Firm | Policy | Threshold | Consequence |
|---|---|---|---|
| FTMO | Overnight Holding | Allowed | No restriction |
| FundingPips | Overnight Holding | Allowed | No restriction |
| BrightFunded | Overnight Holding | Allowed | No restriction |
| FXIFY | Overnight Holding | Allowed on 2-Step & Swing | No restriction |
| Think Capital | Overnight Holding | Allowed on Swing; restricted Standard | Plan-specific |
| Finotive Funding | Overnight Holding | Fully allowed | No restriction |
| Audacity Capital | Overnight Holding | Not allowed | Trade force-closed |
Frequently Asked Questions
What is the overnight holding rule?
It defines whether traders can keep positions open past the daily market close (typically 5PM EST).
Does overnight holding affect swap fees?
Yes — overnight positions incur swap/rollover fees which count against your P&L and drawdown.
Which prop firms restrict overnight holding?
Audacity Capital and some scalping-focused plans restrict overnight holding.
Is swing trading possible if overnight holding is banned?
No — swing trading requires holding positions overnight, so it is incompatible with firms that ban it.