What is Minimum Hold Time?
A minimum hold time is a rule requiring traders to keep a position open for at least a specified duration — typically 30 seconds to 1 minute — before closing. The rule is designed to limit ultra-short-term scalping and prevent latency arbitrage strategies. Trades closed below the minimum hold time may be voided, with their profits removed from the account.
Key takeaways
Minimum duration a position must be held to count.
A minimum hold time is a rule requiring traders to keep a position open for at least a specified duration — typically 30 seconds to 1 minute — before closing.
Trades closed below the minimum hold time may be voided, with their profits removed from the account.
Minimum Hold Time vs. Scalping
Two terms that frequently get conflated. Here's how they actually differ.
Minimum Hold TimeTrading Styles · PRO
ScalpingTrading Styles · PRO
Minimum duration a position must be held to count.
Very short-term trading, often seconds to minutes.
Frequently asked questions
What is Minimum Hold Time?
A minimum hold time is a rule requiring traders to keep a position open for at least a specified duration — typically 30 seconds to 1 minute — before closing. The rule is designed to limit ultra-short-term scalping and prevent latency arbitrage strategies. Trades closed below the minimum hold time may be voided, with their profits removed from the account.
Why does Minimum Hold Time matter for prop firm traders?
Minimum Hold Time affects how you're allowed to trade on a prop firm account. Many firms layer restrictions onto specific styles to protect their treasury — and those restrictions need to fit how you actually trade.
How is Minimum Hold Time different from Scalping?
Minimum Hold Time and Scalping are commonly confused. Minimum Hold Time: Minimum duration a position must be held to count. Scalping, by contrast: Very short-term trading, often seconds to minutes.
What should traders watch out for with Minimum Hold Time?
Style restrictions are often layered: a firm that allows scalping may still ban HFT-like behaviour, and minimum hold times can void otherwise legitimate trades.