Trading Strategies
Day Trading
Definition
A trading style where all positions are opened and closed within the same trading day — no overnight holding.
How It Works
Day trading means entering and exiting all positions before the market closes each day. This eliminates overnight risk (gap risk from news/events).
Day trading is the most common style in prop trading because it aligns well with most firm rules: no overnight holding risk, clear daily P&L tracking, and compatibility with max daily loss limits. Day traders typically trade during the most liquid market hours (London-New York overlap for forex, regular trading hours for futures).
Most prop firms fully support day trading without restrictions.
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