News Trading Restrictions
You trade economic releases. You pass the challenge. Then the firm tells you your news-session trades were violations. This is one of the most common shocks in prop trading, and it is always in the rulebook.
What the rule looks like
Firms phrase it differently:
- “Trading is prohibited 5 minutes before and after high-impact news.”
- “Positions may not be opened during high-impact news releases.”
- “News trading is restricted to [instrument list].”
Some firms ban it outright. Some restrict specific instruments. Some allow it entirely (FTMO is the notable example of an allow).
What counts as “high impact”
Usually the firm’s own calendar, not yours, not the broker’s. The definition matters:
- Does it apply to opening positions, closing them, or both?
- Does it apply to all instruments or only forex pairs?
- Does holding through news count, or only opening around it?
Why it matters
If your edge is trading the NFP or CPI release, a firm that restricts news trading is the wrong firm, no matter how good the discount is. The rule converts your best sessions into violations.
The gotcha
- The restriction is often in the trading rules page, not the rules summary.
- Some firms apply it only to specific account types or programs.
- “No news restriction” is a genuine selling point, treat it as one. Firms that advertise it are showing you their rulebook is on their side.
Ask before buying
- Is news trading allowed, restricted, or banned, in writing?
- If restricted: which calendar, which window, which instruments?
- Does it apply to the program you’re buying, not just the brand?
An event trader who skips this question is buying a landmine with a pretty wrapper.