Overnight & Weekend Holding Rules: A Prop Firm Comparison

PropTally2 min read
prop firmsrulescomparisonovernightguide

Overnight and weekend holding rules are one of the most misunderstood aspects of prop firm trading. Getting this wrong can cost you an account.

Quick Overview

| Firm | Overnight Holds | Weekend Holds | During Challenge | When Funded |

|------|----------------|---------------|-----------------|-------------|

| Apex Trader Funding | Allowed | Close by 3:59 PM ET | Same | Same |

| FTMO | Allowed | Allowed | Same | Same |

| TopStep | Must close by 3:10 PM CT | Not allowed | Same | Same |

| MyFundedFX | Allowed | Allowed | Same | Same |

| The5ers | Allowed | Allowed | Same | Same |

| Funded Trading Plus | Allowed | Firm discretion | Same | Different |

| True Forex Funds | Allowed | Allowed | Same | Same |

Why Firms Restrict Overnight Holding

  1. Gap risk — Markets can gap significantly at open, causing drawdown beyond limits
  2. Swap/financing costs — Overnight positions incur swap fees that affect P&L
  3. Risk management — Firms can't monitor positions 24/7
  4. Liquidity risk — After-hours markets have wider spreads

Strategies for Firms That Allow Holds

If your firm allows overnight holding:

  • Size down — Cut position size by 50% for holds
  • Set stop losses — Never hold without a protective stop
  • Check the calendar — Avoid holding through major economic events
  • Know the session — Asian session gaps are typically smaller than US session gaps

Strategies for Firms That Don't Allow Holds

If you must close by market close:

  • Plan exits 30 minutes early — Don't rush in the final minutes
  • Avoid entering new trades after 2 PM — Not enough time to manage
  • Use time-based alerts — Set reminders at T-30 and T-15 minutes
  • Automate if possible — Some platforms allow time-based order exits

Common Mistakes

  1. Forgetting about time zone differences — 3:10 PM CT is not 3:10 PM ET
  2. Holding hedged positions — Most firms still count this as open
  3. Assuming challenge rules match funded rules — always verify both
  4. Not accounting for after-hours fills — Your order might fill after the deadline

Tracking Compliance

Use PropTally's rule monitoring to track your compliance with firm-specific rules. The drawdown widget shows real-time status against your firm's limits.

For a full comparison of all firm rules, visit our prop firm comparison tool.

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