In the world of leveraged trading, transparency and control are crucial. But some brokers quietly undermine this by enforcing a forceful trade expiry policy—a hidden rule that automatically closes your trades after a fixed duration, regardless of strategy or market conditions. While this may sound like a risk management feature, in reality, it can sabotage long-term trades, distort performance, and strip traders of their strategic freedom.

What Is a Forceful Trade Expiry Policy?

A forceful trade expiry policy is a condition where the broker automatically closes open trades after a predetermined time, such as:

• 24 hours
• 7 days
• 30 days
• End of the trading week

This rule is usually not highlighted during account opening, and is often buried deep in the broker’s terms and conditions under clauses like “order duration limit” or “maximum holding time.”

How the Policy Harms Traders

1. Strategic Sabotage

Many trading strategies rely on medium or long-term positions. A forced expiry:

• Cuts off swing trades prematurely
• Invalidates trend-following setups
• Disturbs risk-to-reward calculations

2. Forced Losses

Trades closed due to expiry are often still within reasonable drawdown or just before hitting take profit levels. This leads to:

• Unnecessary realised losses
• Missed profit opportunities
• Skewed performance metrics

3. Loss of Control Without Notification

Brokers may not send reminders before closing trades. You may log in to find your positions forcibly closed without your input or warning—sometimes at unfavourable prices during low liquidity hours.

4. Inconsistent Application Across Clients

Some brokers apply this rule selectively—enforcing expiry on small retail accounts while exempting VIP or high-volume clients, creating an uneven playing field.

Real Example: Position Auto-Closed Before Trend Completion

A trader using a trend-based system opens a long EUR/USD trade on Monday. The trade is designed to run for 10–14 days based on technical setups. However, on Friday at market close, the position is automatically closed due to a “5-day expiry policy” stated in the broker’s account terms. The trader misses out on a 150-pip move the following week.

When contacted, the broker says, “This is part of our internal risk management.” The trader was unaware, and no prior email or alert was issued.

Why Brokers Use This Tactic

While brokers may claim it’s for:

• “Limiting client exposure”
• “Encouraging active risk management”
• “Reducing swap or weekend gap risk”

The real motives may include:

• Preventing profitable long-term trades
• Increasing trade frequency (and commissions)
• Avoiding payout on favourable swap rates

How to Protect Yourself

1. Scrutinise the T&Cs Before Funding
Search for terms like “maximum holding period,” “expiry policy,” or “auto-close after.” If these clauses exist, ask the broker to explain in plain language.

2. Use Brokers That Offer Unlimited Trade Duration
Reputable brokers allow traders to hold positions indefinitely unless leverage or margin is breached.

3. Request Written Confirmation
If unsure, email support and ask: “Is there any time-based trade expiry on this account type?” Keep their written response for your records.

4. Document and Challenge Unauthorised Closures
If your trade is closed prematurely without justification, request detailed logs and submit a formal dispute. You can escalate to the regulator if needed.

5. Switch Accounts or Brokers If Needed
Some brokers only enforce expiry on certain account types (e.g. micro or bonus-linked accounts). If you’re stuck, consider upgrading—or better yet, switching.

Regulators and Trade Expiry Practices

While not illegal in itself, failure to disclose forced expiry policies may violate transparency and fair treatment rules under regulatory frameworks such as:

• FCA’s Treating Customers Fairly (TCF)
• ESMA’s MiFID II disclosure standards
• ASIC’s client communication requirements

If you’ve been impacted by undisclosed or misleading expiry terms, you may have grounds for complaint.

Conclusion: Regain Control from Forceful Trade Expiry Policies

A forceful trade expiry policy strips traders of autonomy, penalises long-term strategies, and creates invisible constraints that often favour the broker. The best defence is awareness—read the fine print, ask direct questions, and never trade with a broker who limits your positions without fair warning.

To safeguard your trades and build strategies without interference, enrol in our advanced Trading Courses designed to help retail traders trade smart, stay in control, and outmanoeuvre broker tactics.