Overnight Holding at Futures Prop Firms: Why It Barely Exists

Overnight Holding at Futures Firms: The Flat-Before-Close Rule

By PropTrader1 2 min read Published October 28, 2026

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Overnight holding at futures prop firms is close to non-existent: the standard rule is every position flat before the daily close. Topstep requires flat by 3:10pm CT; FTMO Futures by 4:10pm ET or the relevant market close, whichever comes first (both checked 28 October 2026).

The reason is structural rather than cosmetic. Futures gaps on open are violent relative to intraday ranges, and a simulated account cannot hedge the gap - so the firms simply remove it. Position limits are contract-based, and overnight margin would break the evaluation's risk maths entirely. If holding through sessions is core to your strategy, futures evaluations are the wrong product: the CFD firms that allow weekend and overnight holds are the ones to shop.

What does vary: the exact close time per firm, and whether resting orders must also be cancelled (FTMO requires both). The firms that allow holding: weekend holding firms; the category context: futures hub.

Contract specifications for the products these firms evaluate are published by CME Group.

Part of the futures cluster and the full prop firm glossary.

Frequently Asked Questions

Why is a 50% drawdown harder to recover than a 10% one?

A 50% drawdown requires a 100% gain to recover, while a 10% drawdown only needs 11.1%. Recovery math is exponential. At 30% drawdown you need 42.9% to break even. This is why prop firms cap drawdown at 10-12% rather than higher percentages.

What is the 3-5-7 rule in forex?

The 3-5-7 rule suggests risking 1-3% per trade, keeping total open risk at 5% or less, and limiting single market exposure to 7%. It is a general risk guideline, not a prop firm rule, but following it naturally keeps you within most max drawdown limits.

What is a good maximum drawdown?

For prop firm trading, keeping your actual drawdown under 5% is excellent. Most firms allow 10-12%, but staying well below the limit demonstrates strong risk management and gives you a buffer for unexpected market events.

Is maximum drawdown calculated on balance or equity?

It depends on the firm and drawdown type. Static drawdown is typically calculated on starting balance. Trailing drawdown follows your highest equity. Some firms include floating losses in their calculation, making equity the relevant measure.

What happens when you breach maximum drawdown?

Breaching maximum drawdown results in immediate and permanent account closure. All positions are closed automatically, the challenge is terminated, and there is no refund or appeal. It is the final rule with no second chances.

What is the difference between daily drawdown and maximum drawdown?

Daily drawdown resets every day and limits your loss within a single session. Maximum drawdown is cumulative across the entire challenge or funded period. You can breach max drawdown through many small daily losses that accumulate over time.