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What Is an Inactivity Rule

The inactivity rule is a policy enforced by many prop firms that requires traders to place at least one trade within a specified period of time in order to keep their account active. This rule is applied to both evaluation and funded accounts, though it is more common and more strictly enforced in the funded stage. If a trader fails to meet the required trading activity within the designated time window, the account may be marked inactive and automatically terminated, often without the possibility of a refund or reinstatement.

How the Rule Is Structured

The required activity period varies between firms and account types. Some firms require at least one trade every seven calendar days, while others may allow up to 30, 60, or even 180 days of inactivity before action is taken. In most cases, the period is measured from the date of the last executed trade, not from the date the account was opened. Once the maximum inactivity period passes without any trading activity, the account is considered abandoned and is closed permanently.

For example, if a firm has a 30-day inactivity rule and the trader does not place any trades during that period, the funded account will be closed on the 31st day with no option to recover it. This applies even if the account is in profit or otherwise in good standing. Firms may or may not provide a warning before closure, and some make it clear that inactivity is the trader’s responsibility to monitor.

The purpose of the inactivity rule is to keep the firm's systems and capital deployment efficient. Prop firms fund a large number of accounts, and inactive accounts that remain open create unnecessary overhead, strain on systems, and capital allocation inefficiencies. By enforcing time-based trading requirements, firms ensure that funded traders are actively participating and that account resources are used productively.

This rule also encourages consistent engagement and avoids scenarios where traders leave accounts idle for months and expect immediate reactivation or payout eligibility. From the firm’s perspective, active management is a key part of the funding relationship, and extended inactivity suggests disinterest or abandonment.

Managing Inactivity Risk

To avoid violating the inactivity rule, traders should be aware of the inactivity window for each firm and plan accordingly. Even placing a small trade is often sufficient to reset the timer. If a trader needs to take time off, it is helpful to schedule a minimal level of trading activity or reach out to the firm in advance if the absence will be longer than the allowed window. Some firms will allow the inactivity timer to be paused temporarily if the trader informs them beforehand and receives approval. While this flexibility is not guaranteed, it may be offered on a case-by-case basis and should be requested with enough notice.

Traders in the funded stage should be especially cautious, as inactivity on a funded account not only leads to termination but can also result in the loss of any progress, payout eligibility, or trading privileges accumulated over time.

Summary

The inactivity rule requires traders to place at least one trade within a specified number of days to keep their account active. This rule is most common in funded accounts but can also apply during evaluations. Inactivity periods vary by firm and can range from 7 to 180 days. If the trader fails to meet the requirement, the account is closed and typically cannot be recovered. To remain in compliance, traders should understand their firm’s inactivity policy and maintain regular trading activity or communicate proactively if a break is needed. Some firms may offer the option to pause the inactivity timer if contacted in advance.