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Is gap trading allowed?

P
Written by Pavlos Antoniou
Updated this week

Gap trading is not permitted on any 10-Four account.

Gap trading refers to opening positions shortly before a market closes with the intention of benefiting from a price gap when the market reopens.

The following is not allowed:

• Opening trades within two hours of market close when the market will remain closed for two or more hours

• Positioning ahead of major scheduled events with the intent to exploit potential reopening gaps

Example:

Opening a position shortly before Friday’s close to capture a potential Monday gap is prohibited.

Any trades placed within the restricted window with the intent to exploit expected price gaps may be considered a violation of our rules.

Accounts engaging in this practice may face termination and forfeiture of payouts.

Our model rewards structured trading — not exploiting market closures.

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