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Overnight Holding

Definition

Whether a prop firm allows traders to keep positions open past the daily market close into the next trading day.

How It Works

Overnight holding (or "swap" positions) means keeping a trade open when the market closes for the day. This carries overnight risk — unexpected news or economic events during off-hours can cause adverse price movements at the next open.

Some prop firms, particularly futures firms, require all positions to be closed before the daily session ends. Others allow overnight holding but may impose additional margin requirements.

Day traders won't be affected by this rule, but swing traders need firms that allow overnight positions.

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