Weekend Holding Rule: Keeping Positions Over the Close

Weekend Holding: The Rule About the Sunday Gap

By PropTrader1 2 min read Published October 28, 2026

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The weekend holding rule decides whether positions may stay open over the market close. Most CFD prop firms forbid it on standard accounts; futures firms forbid it by construction, requiring flat before the daily close - Topstep by 3:10pm CT and FTMO Futures by 4:10pm ET (both checked 28 October 2026).

The reason is the gap. Markets reopen on Sunday evening (or Monday morning) with a jump; a position stopped at 1.2950 can open at 1.3010 with no tick in between, pushing an account through its drawdown without a chance to exit. Firms that do allow weekend holding price the risk into tighter limits - The 5%ers' Swing-style options and a handful of others trade that trade-off.

Why it matters: swing traders must pick firms by this rule first, because it invalidates the strategy outright. Swap-free add-ons do not change it, and neither does account size. The firms that allow it: prop firms that allow weekend holding; the futures position: overnight holding in futures.

Plain-language material on leveraged-trading risk is maintained by the ESMA investor corner.

Part of the rules & drawdown 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.