News trading — Trading through scheduled economic releases, which many firms restrict or prohibit within a window around the event.
How news trading works in prop trading
News restrictions exist because spreads widen and fills degrade around scheduled releases, which produces losses the firm has to honour and profits it considers unearned. Where a restriction applies it is usually a window — commonly two minutes either side of a high-impact release, sometimes five — during which you may not open or close positions.
The consequences differ sharply between firms, and this is the detail to check. Some void only the trades placed in the window. Others treat any position held through the release as a violation, including one opened hours earlier, which effectively bans holding through news rather than trading it. And the definition of high-impact varies: some firms publish a list, others defer to a third-party calendar.
Key points
- Typical restriction windows run two to five minutes either side of a high-impact release.
- Some firms void only trades opened in the window; others penalise any position held through it.
- Which releases count as high-impact is firm-defined and worth reading — it is not a universal list.
- Restrictions frequently apply only to the funded stage, not the evaluation.
Also known as
- trade during news
- news restriction
- news window
- high-impact news rule
Frequently asked questions
Can you trade the news with a prop firm?
At some firms yes, at others no. Futures firms are generally more permissive than forex-style ones. Where a restriction exists it is normally a short window around scheduled high-impact releases rather than a blanket ban, but check whether merely holding through the release counts as a violation.
What counts as high-impact news?
Firms typically mean the releases marked high-impact on a standard economic calendar — non-farm payrolls, CPI, FOMC decisions, and similar. Some publish their own list. Because the definitions differ, use the calendar the firm names rather than any calendar.
Put this into practice
News trading is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.