Inactivity Rule
A rule that closes a funded account after a period of no trading activity — typically 14 to 30 days — even if the account is otherwise in good standing.
Definition
An inactivity rule is a firm policy that closes a funded account if the trader does not place any trades for a defined period. Typical inactivity windows range from 14 to 30 calendar days, though some firms enforce as short as 7 days and others extend to 60. The rule exists primarily to manage the firm's exposure on simulated funded accounts: an inactive trader represents capacity the firm has committed to but is not earning split revenue from. When the inactivity window passes, the account is closed automatically — any accumulated profits are typically kept (paid out on a final request), but the account itself is terminated and must be earned again through a new evaluation.
Example
Why It Matters
Inactivity rules are underestimated because they are often not surfaced in the challenge dashboard — traders find them only after an account is closed. Traders with seasonal or irregular trading schedules should check the inactivity window before funding, and treat any gap approaching the window as a forced-trade deadline. A common mitigation is placing a single small position (sub-minimum-risk) every 10-14 days to reset the inactivity clock without meaningful risk. The rule also interacts poorly with KYC and payout delays: a trader waiting on a first payout for 20 days can inadvertently trip an inactivity rule if the payout delay extends past the window.