{"term":{"slug":"overnight-holding","term":"Overnight Holding","definition":"Keeping trading positions open past the daily market close. Some prop firms require all positions to be flat (closed) before the end of the trading session, while others allow positions to be held overnight.","extendedExplanation":"Overnight holding rules primarily affect futures traders. Futures markets have a daily close and re-open, and prices can gap significantly between sessions. Firms that prohibit overnight holding want to avoid the risk of traders getting caught in an overnight gap.\n\nTopStep and Apex require all positions to be flattened before the daily close. This means swing trading is effectively impossible -- you must be a day trader. FTMO, FundedNext, and The5%ers allow overnight holding, making them suitable for swing traders.\n\nThe practical impact is significant for trading style. If you trade forex (which operates nearly 24 hours), overnight holding restrictions are less relevant. For futures traders, being forced to close by 4:00 PM EST means missing overnight moves that could be profitable. Traders who prefer holding positions for days or weeks should choose firms that allow overnight and weekend holding.","exampleWithNumbers":"TopStep $100K futures account: markets close at 4:00 PM CT. You have a winning NQ position at 3:55 PM. You must close it before 4:00 PM or face a rule violation. If NQ gaps up $200 overnight, you miss $4,000 in potential profit (2 contracts). On FTMO forex, you could hold EUR/USD overnight and capture the Asian session move.","category":"trading","relatedTerms":["weekend-holding","news-trading-restriction","position-sizing","daily-loss-limit"]},"_links":{"self":"https://runvigil.app/api/glossary/overnight-holding","page":"https://runvigil.app/learn/overnight-holding","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}