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Market Rollover Explained

Quick answer: The new trading day begins at 5pm EDT. That's when daily drawdown resets, and it's also a one-hour window of thin liquidity, wide spreads and slippage.

What rollover is

A one-hour period when trading sessions transition and liquidity temporarily drops. During it:

  • Spreads can widen significantly

  • Liquidity may be reduced

  • Volatility can increase unexpectedly

Stop losses and take profits may slip and may not execute at your requested price.

Why it matters for your account

Both are true at once at 5pm EDT: your daily drawdown resets, and conditions are at their worst for slippage. A widened spread can push equity below a breach level on a position that looked safe minutes earlier.

Recommended: close positions before rollover, or leave enough buffer in your stop loss to absorb spread expansion.

What the reset does and doesn't do

It does: begin the next daily drawdown cycle and update the daily metric.

It does not: lower a trailing maximum drawdown level, change the Pro static floor, restore a breached account, remove closed losses, or guarantee that the next day's available room equals the full headline percentage.

Positions carried into the new day remain subject to maximum drawdown at all times.

Common question

What time is 5pm EDT where I am? Convert carefully and account for daylight-saving changes. Use Trader Area and platform timestamps to confirm the active cycle rather than a local clock.

See also: Drawdown rules


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