Can You Hold Trades Over the Weekend in Prop Trading?

Can you hold trades over the weekend in prop trading? This question will be discussed. In the world of prop trading, all decisions are calculated decisions including the question of whether or not one should hold positions over the weekend. Although holding trades over the weekend can seem to be a strategic move, especially in trending markets, it holds its own risk, especially in prop trading environments. Whether or not a trader can hold positions over the weekend depends on the specific prop firms rules, evaluation stage and risk management strategy of yours.

Understanding Prop Firm Rules

Most prop firms have a clear policy of whether or not they allow holding trades over the weekend. Regarding weekend holding, they typically fall into 3 categories:

Strictly No Weekend Holding: Many firms do not permit weekend holding. This rule is put into place to avoid breaches resulting from weeknd gaps.
Weekend Holding With Conditions: Some prop firms allow weekend holding but only on the evaluation or funded stage, depending on the firm. Additionally, they could have risk restrictions if holding over the weekend such as no more of x amount of your account can be at risk when holding over the weekend.
Fully Permitted Weekend Holding: Some firms fully allow weekend holding with no restrictions.

Why Weekend Holding is Risky

There are some risks when holding trades over the weekend and even overnight:

Weekend Gaps: Markets often open significantly higher or lower once opening after the weekend for various reasons including geopolitical events, news or economic related events.
Lack of Liquidity: Market opens after the weekend tend to have low liquidity levels which cause wide spreads and slippage. Even a stop loss may not trigger at the price you set it for.
Unpredictable News Events: Sometimes on the weekend, news events may happen unexpectedly or political/social unrest causing markets to fluctuate greatly after the market opens.

When it Might Make Sense to Hold

Sometimes it makes sense to hold over the weekend, despite the risks. Here are these scenarios it would be fine to hold over the weekend:

Strong Fundamental Bias: If you are confident in your analysis and have an understanding that there can be gaps, you may decide to hold a small and protected position.
Partial Position Management: Some traders will partially close their position on Friday and allow partial to be held over the weekend with proper risk management.
Hedged Trades: Traders sometimes offset open trades with correlated instruments to reduce directional risk.

Conclusion – Can You Hold Trades Over the Weekend in Prop Trading?

Holding trades over the weekend is a calculated decision based on the prop firm weekend holding rule, trade set up, and ability to manage volatility. In some cases, weekend holding is best to be avoided entirely and in other cases it should be used sparingly. Capital preservation and risk management are number one. Avoid risking your account on unpredictable weekend events unless your trade plan accounts for all potential outcomes.

Frequently Asked Questions – Can You Hold Trades Over the Weekend in Prop Trading?

Can you hold trades over the weekend in prop trading?

Some prop firms allow it while others allow it conditionally and some allow it with no restrictions. Ensure to check the rules of the prop firm well.

Are weekend holds allowed for funded traders?

This depends on the prop firm. At TTT Markets, we allow weekend holding on all accounts except for one step funded accounts.

What are some risks of weekend holding?

Price gaps, low liquidity and slippage and unpredictable news events over the weekend.

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