Holding Period
Rules
Holding period is the length of time a position is kept open. Some firms enforce minimum or maximum holding periods.
Holding period is the length of time a position is held open. Some prop firms impose minimum holding periods (typically 30 seconds to 2 minutes) to discourage HFT and exploit-style trading. A handful impose maximum holding periods to discourage overnight or weekend exposure.
Minimum holding rules interact with the consistency rule: if forced to hold trades for at least a minute, scalpers may have fewer trades per day, concentrating P&L into individual outcomes.
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