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Is news trading allowed?

Yes, it is allowed but conditions apply. Read more to get informed.

FundingTraders.com Support avatar
Written by FundingTraders.com Support
Updated over a week ago

At FundingTraders, we encourage traders to stay informed and engaged with market events, and we permit news trading within our platform. However, it's crucial to be aware of the potential challenges associated with news trading.

During high-risk events and news releases, it's common to encounter significant gaps and wide spreads in the market. These conditions can result in undefined slippage on stop loss orders, particularly for those orders dependent on our liquidity providers. Therefore, it's essential for traders to exercise caution and have risk management strategies in place when engaging in news trading.

To assist traders in staying well-informed, we provide access to an event calendar on our dashboard. This calendar highlights high-risk news events and their scheduled release times, helping you plan your trading activities effectively.

It's worth noting that while news trading is allowed, relying heavily on this strategy, especially on both evaluation and funded accounts, is discouraged. This is because, during high-risk events, there can be a significant difference in execution between our master account and the funded accounts. This variance can pose challenges to the sustainability of trading strategies heavily reliant on news events. At FundingTraders, we aim to provide a balanced and stable trading environment, encouraging traders to diversify their strategies and reduce dependence on high-impact news events for long-term success.

Summary:

Allowed | News trading is allowed.
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However, you must be aware of potential gaps and wide spreads that are common during high-risk events/news releases. This can lead to undefined slippage on stop-loss orders that are dependent on our liquidity providers.

Access the event calendar on our dashboard to be aware of when high-risk news will be released/take place.

Note: Relying heavily on news trading is not allowed on both evaluation and funded accounts as this is not sustainable. During high-risk events, the difference in execution on our master account compared to the evaluation and funded accounts is too drastic.

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