At FundingTraders, we understand the impact of economic news on financial markets. High-impact news events can create extreme volatility, leading to both opportunities and risks. To maintain a fair and stable trading environment, we regulate news trading under specific conditions.
What Is Considered News Trading?
News trading is defined as opening, closing, or holding a trade within 5 minutes before or after a high-impact news release. This time frame is critical as price fluctuations tend to be most aggressive, which can lead to execution risks, unexpected losses, or excessive profits based purely on market reaction rather than trading skill.
Next Gen & Legacy Accounts
Challenge Phase: News trading is allowed, but if more than 50% of profits come from news events, the account may be subject to downscaling or retakes.
Funded Phase: News trading is strictly prohibited. Detection of news-based trades will result in profit deductions. If deductions surpass drawdown limits, the account will be terminated.
Exception: Trades opened at least 5 hours before a news event and closed within the restricted window will not be considered as news trading.
Legacy & Next Gen News Trading Exception:
To accommodate swing traders while preventing news gamblers, trades that are opened at least 5 hours before a high-impact news event will be excluded from news trading restrictions and can be closed within the prohibited time window. The profits of these trades will be counted.
Trading Rule Clarification
Trades Opened 5+ Hours Before News: Profits are accepted if closed within the 10-minute window.
Trades Opened Less Than 5 Hours Before News: Profits are forefeited if closed within the 10-minute window.
Partial Order Closures: Closing any part of an order within the restricted window will mark the entire order as news trading.
Trader Accountability: Traders are responsible for adhering to the rules. If profit deductions exceed the daily loss or maximum loss limits, the account may be closed.
High-Impact News Restrictions
During high-impact news events, trading activity is restricted within a 10-minute timeframe, which includes 5 minutes before and 5 minutes after the event. Opening, closing, or holding positions during this period is strictly prohibited for the affected currency pairs.
Additionally, any profits from trades executed or closed within the 5-minute window before or after the event will not be credited to the Master account.
Examples:
Affected Currency Pairs: If a high-impact news event influences USD, trading any USD-related pairs during this timeframe is not allowed.
Timing Restriction: If you initiate a trade before the news event but close it within the restricted period, any resulting profits will not be counted.
Speech-Based Trading Restrictions
For speeches, the restriction applies from 5 minutes before the speech begins until 5 minutes after it concludes.
High-Impact News List: A dedicated tool will be provided to help traders easily identify restricted news events to ensure compliance.
Affected Instruments
Affected Instruments
Macroeconomic Announcements
USD - High-Impact News
Unemployment Rate
Non-Farm Payrolls and Employment
PMI
ISM
CPI
PPI
GDP
Federal Funds Rates and Statements
FOMC
Trade Balances
Jobless Claims
Consumer Confidence
JOLTs Job Openings
Average Hourly Earnings
10Y Note Auction
30Y Bond Auction
Existing and New Home Sales
Durable Goods Orders
Speeches
EUR
PMI
CPI
GDP
Employment Change
Unemployment Rate
Retail Sales
Balance of Trade
ECB Rates and Statements
Deposit Facility Rate
Economic Sentiment Index
Business Climate
Consumer Confidence
Speeches
GBP
PMI
CPI
GDP
Nationwide House Prices
Mortgage Approvals
Retail Sales
Retail Price Index
Housing Price Balance
BoE Rates and Statements
Trade Balances
Industrial and Manufacturing Production
Unemployment Rates
Employment Change
Claimant Count Change
Consumer Confidence
Speeches
CAD
BoC Rates and Statements
PMI
CPI
GDP
International Merchandise Trade
Wholesale Sales
Housing Starts
Balance of Trade
Employment Change
Unemployment Rate
Retail Sales
Speeches
AUD
Cash Rate & RBA Statement
Employment Change/Unemployment Rate
CPI
GDP
Retail Sales
Speeches
NZD
Official Cash Rate & RBNZ Rate Statement
Employment Change/Unemployment Rate
CPI
GDP
Speeches
CHF
CPI
SNB Policy Rate
Speeches
JPY
PMI
CPI
GDP
Monetary Base
Leading Economic Index
Japan to Sell Bonds
Industrial Production
Merchandise Trade Balance
BoJ Rates and Statements
Retail Trade
Consumer Confidence
Balance of Trade
Speeches
Other Instruments
OIL (USOIL & UKOIL)
Crude Oil Inventories
Summary of News Trading Rules
Allowed: News trading is permitted under specific conditions.
Next Gen & Legacy Accounts: A trade is classified as news trading if it is opened, closed, or held within 5 minutes before or after a high-impact news event.
Risk Factors: Market gaps, spread widening, and execution slippage are common during high-impact news.
Best Practice: Use the economic calendar to track upcoming news events and avoid unnecessary exposure.
Trading Strategy Warning: Purposely trading the news trading is discouraged due to market unpredictability.
Profit Limitation: If more than 50% of total profits in the challenge phase come from news trades, the account may be downscaled or granted a retake (subject to deliberation) In the funded phase, profits may be deducted or the account terminated if violations exceed drawdown limits.
By following these guidelines, traders can make informed decisions while maintaining the integrity of their accounts. If you have any questions, please reach out to our support team.