Prop Trading Basics
Prop Firm News Trading Restrictions: What You Need to Know
Can you trade news events at a prop firm? Learn about common news trading restrictions, why they exist, and which firms allow it.
Source updated
- Originally published
- Source updated
In this article
News-trading permission is a rule for an event, instrument, action and account stage. A company-wide “news allowed” label can hide restrictions on opening, closing, pending orders or holding positions.
Before a scheduled release, check both the programme's policy and your own execution risk.
Read the Policy as a Set of Conditions
Record the provider's designated calendar, restricted event, affected instruments, timezone, start and end of any window, and the actions covered. Check how stop-loss, take-profit and pending-order execution are treated.
“Close-only” and “must be flat” are not synonyms: the first can permit closing an existing position, while the second requires no position remaining. Use the provider's actual wording rather than a paraphrased table label.
Why the Stage Matters
FTMO's news FAQ distinguishes evaluation and FTMO Account conditions, including account-type differences. My Funded Futures' news policy is another programme-specific source to check before assuming the evaluation's permission continues into a reward account.
Neither establishes a universal two-to-five-minute restriction or unlimited permission at another firm.
Make the Schedule Operational
Convert the official event time into your platform and local time, accounting for daylight-saving changes. Set reminders early enough to inspect open positions and working orders. Recheck schedule changes and holiday sessions.
A news feed marking an event “high impact” is not necessarily the calendar the provider uses. If sources disagree, resolve the programme's designated source rather than choosing the more convenient window.
Permission Does Not Establish Safe Execution
Fast moves and changing liquidity can cause fills away from intended prices. A stop price is not a guaranteed execution price, and a simulated fill does not establish what a live order would have received.
Test an event-sensitive strategy separately. Do not assume that reducing size or waiting a fixed thirty minutes makes every event suitable.
Frequently Asked Questions
Can I hold an existing trade through news?
Only if the exact account policy permits it. Opening, holding and closing may have different restrictions.
Does accidental execution always have the same consequence?
No. Check the policy for account breach, profit adjustment or other treatment. Do not assume a warning or automatic termination.
Does permission during evaluation continue after passing?
Not necessarily. Confirm the new stage's terms before the first trade.
Risk Disclaimer: Trading involves substantial risk of loss. Past performance is not indicative of future results. See our full risk disclaimer.