Definition
What is Swing trading?
Swing trading is a style that holds positions for several days or weeks to capture a larger part of a price move than intraday trading.
Swing traders work from higher timeframes such as the 4-hour and daily charts. Stops are wider, so position sizes are smaller for the same risk in dollars.
Holding overnight and over weekends brings extra considerations: swap costs, weekend gaps and news released while the position is open.
At a prop firm the key rules for swing traders are whether weekend holding is allowed, how the maximum loss trails and whether open positions must be closed around high-impact news.
Example
Example: a swing trade on gold with a $20 stop risks $100 with 0.05 lot (5 ounces), 1% of a $10,000 account. A $60 move to target makes $300, a 1:3 ratio.
At a prop firm
For swing trading on Axora Funded, the 1-Step, Spark, Pass and Bolt allow weekend holding, while the 2-Step and Ascent evaluations close positions on Friday at 20:45 UTC. On newer paid accounts, holding an affected position through a high-impact release suspends the account.
Frequently asked questions
Which Axora Funded programme suits swing traders?
Programmes without the weekend rule, such as the 1-Step, Spark, Pass or Bolt.
Do swing traders pay more in costs?
They pay fewer commissions but may pay swap on every night a position stays open.