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Minimum Trade Duration

Is there a minimum trade holding time?

Written by PS

Is there a minimum trade holding time?

Yes.

Legion Funding enforces two separate trade duration rules:

  • Evaluation: Your overall average trade duration must be greater than 2 minutes.

  • Funded Account: Every individual trade must remain open for at least 1 minute before it can be closed.


How is the average trade duration calculated?

Your average trade duration is calculated using the following formula:

Average Trade Duration = Total Time All Trades Were Open ÷ Total Number of Trades


Example 1 – Rule Met

A trader executes 5 trades with the following durations:

  • 2 minutes

  • 3 minutes

  • 4 minutes

  • 5 minutes

  • 6 minutes

Total Duration: 20 minutes

Average Trade Duration: 20 ÷ 5 = 4 minutes

Result: The trader complies with the Average Trade Duration Rule.


Example 2 – Rule Not Met

A trader executes 5 trades with the following durations:

  • 30 seconds

  • 1 minute

  • 1 minute

  • 2 minutes

  • 2 minutes

Total Duration: 6 minutes 30 seconds

Average Trade Duration: 6 minutes 30 seconds ÷ 5 = 1 minute 18 seconds

Result: The average trade duration is below 2 minutes, resulting in a rule violation.


What happens if I violate the Average Trade Duration Rule?

The 2-minute Average Trade Duration Rule applies to the Evaluation account.

Failure to comply with this rule will result in a Hard Breach.


What happens if I violate the 1-minute holding period rule?

The 1-minute minimum holding period applies only to Funded Accounts.

Violations are handled as follows:

  • First violation: Soft Breach

  • Second violation: Hard Breach and account termination.


Important Notice

To remain compliant with Legion Funding's Trading Rules:

  • Maintain an overall average trade duration of more than 2 minutes on the Evaluation account.

  • On the Funded Account, ensure every individual trade is held for at least 1 minute.

Failure to comply with these requirements may result in the applicable breach action in accordance with Legion Funding's Trading Rules.

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