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Strategy Restrictions

Is there a minimum amount of time I need to hold a trade?

📌 Quick Definition

Some prop firms enforce a minimum trade duration — requiring positions to be held for at least 2–5 minutes before being closed. This rule targets traders exploiting latency or spread arbitrage on very fast timeframes.

Is there a minimum amount of time I need to hold a trade?

Some prop firms enforce a minimum trade duration — requiring positions to be held for at least 2–5 minutes before being closed. This rule targets traders exploiting latency or spread arbitrage on very fast timeframes.

Key Points

  • Typically 2–5 minutes minimum where enforced
  • Designed to prevent tick scalping and latency abuse
  • Trades closed before the minimum time may be removed
  • Not common at most major firms
  • Check firm-specific rules if you trade on very short timeframes

Firm Comparison

FirmPolicyThresholdConsequence
FTMOMin Hold TimeNo minimum (scalping allowed)No restriction
FundingPipsMin Hold TimeNo minimumNo restriction
FXIFYMin Hold TimeNo minimumNo restriction
BrightFundedMin Hold TimeNo minimumNo restriction
Audacity CapitalMin Hold TimeRestricted very short tradesAccount warning
Finotive FundingMin Hold TimeNo minimumNo restriction
E8 MarketsMin Hold TimeNo minimumNo restriction
Think CapitalMin Hold TimeNo minimumNo restriction

Frequently Asked Questions

What is the minimum hold time rule?

It specifies the shortest time a trade must be open before it can be closed — designed to prevent tick scalping and broker exploitation.

Do most prop firms have a minimum hold time?

No — most major firms including FTMO, FundingPips, and FXIFY have no minimum hold time requirement.

What is a typical minimum hold time when enforced?

Firms that enforce it typically require trades to be held for at least 2–5 minutes.

Can I use a scalping strategy if there is no minimum hold time?

Yes — as long as your strategy doesn't breach daily drawdown limits or use banned tactics like HFT.

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