News Trading at Prop Firms: What Is Allowed and What Is Not
How prop firms treat news trading: restricted windows, challenge vs funded differences, and how to avoid losing your profits.
Why firms restrict news
During high-impact news spreads widen and slippage spikes, so some firms set a window before and after the release in which opening or closing trades is banned.
Common versions of the rule
- Fully allowed in every stage.
- Allowed in the challenge, restricted on funded accounts within a set window.
- Allowed, but news trade profits are excluded or reduced.
How to protect your account
- Check the news rule on the firm page for each challenge type.
- Follow the economic calendar and know high-impact events in advance.
- Do not leave a trade whose stop or target could trigger inside the restricted window.