Should a prop firm allow overnight positions?
Quick answer
Most CFD prop firms allow overnight positions, because many strategies hold for more than a day. Some intraday-focused programmes require positions to be closed before the end of the day. If you restrict it, define the cutoff time clearly and decide how open positions are handled.
Detailed answer
Points to consider:
- Daily loss interaction: an overnight floating loss affects the next day's limit, depending on how the day's reference is set.
- Financing costs: real markets charge swap; simulators may not.
- Audience expectations: swing traders need overnight holding.
If you allow it, make sure the daily loss rule handles positions carried across the reset fairly. On PropExecutor, the daily limit opens on the higher of balance and equity, so an overnight floating loss counts against the new day rather than resetting the allowance. A trading hours window rule can restrict when orders are accepted, if you want intraday-only behaviour.
Where to draw the line
Most firms allow overnight holding and restrict only the weekend, where gaps are larger. An intraday-only rule suits specific programmes, such as a session-based challenge, but narrows your audience.
If you do restrict it, say exactly when positions must be closed and what happens to any still open at that time.
PropExecutor team · Updated
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