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Is There Any Forex Prop Trading Firm That Allows Overnight Positions?

Is there any Forex prop trading firm that allows overnight positions? Prop trading firms are usually quite rigid when it comes to their policies. This is simply because they need to limit their risk as much as possible.

However, there are a few firms that do allow overnight positions in Forex trading. Keep reading to learn more about these firms and how they can help you make money in the Forex market with any trading style of your choice

In this article, we will look at what forex prop trading is all about, explore some benefits of forex prop trading, see whether there are forex prop trading firms that allow overnight positions, and what you should consider as a trader when choosing a firm.

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Forex prop trading has become an attractive option for many experienced traders who want to take control of their own trades and earn higher profits. Forex prop trading involves trading with the firm’s capital instead of your personal funds.

Some prop trading firms have strict rules and limitations on trading positions, which can impact the profitability of a trader. One such limitation is the prohibition of overnight positions. Overnight positions refer to trades that are held open overnight, which can carry higher risks and require more margin.

As a result, some prop trading firms have policies that limit or prohibit overnight positions. So, this can be a significant concern for traders who prefer to hold positions overnight for various reasons.

What is forex prop trading?

Forex prop trading, also known as proprietary trading, is a form of trading where a firm or company provides funding for you to trade in the financial markets. In this type of trading, you use the firm’s capital to trade the markets and receive a share of the profits made from your trading activities.

The prop trading firm provides you with capital, technology, training, and other resources needed to trade the markets successfully. In return, the firm takes a share of the profits you make, typically ranging from 20% to 50% of the profits.

What are the benefits of forex prop trading?

Forex prop trading is an opportunity for traders who do not have the necessary funds to trade the markets to gain access to funding and other resources. It also allows firms to diversify their trading portfolios by providing capital to multiple traders who use a variety of strategies to trade the markets.

Forex prop trading has several benefits, including:

  1. Access to Capital: Forex prop trading provides you with access to large capital. As a trader, you can place larger trades and potentially earn higher profits.
  2. Better Trading Conditions: Prop trading firms offer you access to better trading conditions, including lower commissions, tighter spreads, and faster execution speeds. This is because prop trading firms can negotiate better deals with liquidity providers and brokers due to their size.
  3. Training and Mentorship: Many forex prop trading firms offer training and mentorship programs for you to grow your skills. These programs can be invaluable if you are a newbie who wants to improve your trading skills and strategies.
  4. Profit-Sharing: In most forex prop trading firms, you receive a portion of the profits you generate. This incentivizes you as a trader to trade profitably and provides a clear path to higher earnings.
  5. Flexibility: Forex prop trading offers you more flexibility than traditional trading. you can work from anywhere in the world and often have more control over your trading schedule. This makes it a popular option if you want to have more control over your work-life balance.

Prop trading firm that allows overnight positions?

Yes, this might sound surprising but, there are some forex prop trading firms that allow overnight positions. However, it is important to note that each firm may have different policies and guidelines regarding overnight positions.

When searching for a prop trading firm that allows overnight positions, it is important to do your research and carefully review their policies and fees. Look for a firm that offers favorable trading conditions, low fees, and a good reputation in the industry.

Some popular Forex prop trading firms that may allow overnight positions include TopstepFX, My Forex Funds, and Forex Trading Floors. It is important to note that these firms may have different rules and requirements for traders, so it is important to carefully review their policies and guidelines before committing to trading with them.

What are the risks of forex prop trading?

Forex prop trading, like any other form of trading, involves risks. While forex prop trading can be profitable, it’s important to understand the risks involved.

One of the main risks of forex prop trading is the high level of leverage used. The use of leverage can amplify both profits and losses, and you can quickly lose more than your initial investment if the market moves against you. So, always remember to manage your risk with the help of stop-loss orders.

Market risks are also a factor in forex prop trading. Market conditions can change quickly, and unexpected news or events can cause significant price movements in the market. you must stay informed about market conditions and manage risk accordingly.

However, there is the risk of fraud. While reputable forex prop trading firms exist, there are also fraudulent firms that prey on unsuspecting traders. So, do your due diligence before choosing a prop trading firm to avoid scams and protect your investments.


While there are some forex prop trading firms that allow overnight positions, they may not be as common as those that require you to close out your positions before the end of the trading day.

The availability of overnight trading privileges may depend on the specific trading strategies, risk management policies, and capital requirements of the prop firm. It is also essential to understand the risks associated with overnight trading, including the potential for significant losses due to market volatility and unexpected news events.

Ultimately, you should carefully weigh the potential benefits and drawbacks of overnight positions in the context of their individual goals, risk tolerance, and trading strategies, and work with a reputable and trustworthy forex prop trading firm that aligns with your needs and objectives.

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