Minimum holding times at the broker level
Posted: Sat Oct 31, 2026 9:18 pm
Some brokers require trades to stay open for a minimum period, often five to sixty seconds, and ignore or cancel profits from trades closed sooner.
For scalpers who trade ultra-short durations, the rule is a direct hit. A strategy that exits within seconds can have its gains voided, with no notice at the time of the trade.
The justification is usually that very fast trades exploit latency or feed differences. In practice, it also catches legitimate quick exits.
Reading the terms is the first step. Testing is the second: place a few quick trades on a small account and check whether the credited profit matches.
If a minimum exists, the strategy needs adjusting. Holding longer changes the risk profile, and it may or may not be profitable under the new constraint.
Some regulated brokers have no such rule, and many that advertise scalping-friendly conditions state that explicitly.
The choice of broker is part of the strategy, not a separate decision.
Has a minimum holding time rule ever forced a change in the approach?
For scalpers who trade ultra-short durations, the rule is a direct hit. A strategy that exits within seconds can have its gains voided, with no notice at the time of the trade.
The justification is usually that very fast trades exploit latency or feed differences. In practice, it also catches legitimate quick exits.
Reading the terms is the first step. Testing is the second: place a few quick trades on a small account and check whether the credited profit matches.
If a minimum exists, the strategy needs adjusting. Holding longer changes the risk profile, and it may or may not be profitable under the new constraint.
Some regulated brokers have no such rule, and many that advertise scalping-friendly conditions state that explicitly.
The choice of broker is part of the strategy, not a separate decision.
Has a minimum holding time rule ever forced a change in the approach?