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Why Swing Trading is Not Allowed

Explanation of daily position closure requirements.

Updated over 2 weeks ago

Summary

MegaTrader prohibits swing trading to maintain platform risk stability, protect account performance, and ensure all traders operate within short-term trading windows. This policy is consistent across all account types and is strictly enforced.


What Is Swing Trading?

Swing trading refers to holding positions overnight or over multiple trading sessions in an attempt to capture extended market moves. Unlike intraday strategies, swing trades involve greater exposure to overnight volatility and unpredictable market gaps.


Why Swing Trading Is Restricted

MegaTrader’s infrastructure is designed for short-term, intraday futures trading. Swing trading introduces elevated risks and compliance challenges, including:

  • Overnight Gaps: Price changes outside market hours can bypass stop-losses

  • Platform Exposure: Increased volatility threatens overall platform stability

  • Delayed Risk Management: Risk controls may not execute until the next session, potentially breaching drawdowns


Trading Session Requirements

All positions must be closed before the end of the official trading session:

  • Session Close: 5:00 PM EST/EDT (MegaTrader’s trading day end)

Any position held past this time may violate platform rules and result in automatic account failure or restriction.


Consistency Across Plans

This policy applies to all plan types:

  • Growth Challenge

  • Elite Challenge

  • Funded Plan

Traders are expected to actively monitor and close their positions daily.


Best Practices

To stay compliant:

  • Monitor open positions as the 5:00 PM session close approaches

  • Use automated exits or alerts to prevent accidental holdovers

  • Avoid strategies that rely on holding through major news or overnight moves


Need Help?

If you’re unsure whether your strategy qualifies as swing trading or need assistance closing positions, contact [email protected] or message us via live chat.

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