Prop firm news rules explained

Prop firms fund traders who pass an evaluation, then hold them to strict rules. The news rule surprises more people than any other, because it can be broken by a trade that was opened hours earlier.

What the rule usually says

Many firms restrict trading for a few minutes, often two, either side of high impact news. The details vary a lot:

• Some only ban opening trades in the window.
• Some ban opening and closing, which means a stop or target filling during the window can count as a breach.
• Some count news in every currency, so an ECB speech can matter while you're trading gold.
• Some firms or account types have no news rule at all.

Always read your own firm's current rules. They change, and marketing pages don't always mention them.

The trap

You open a gold trade at 12:10. US inflation data is due at 13:30. You don't plan to be in the trade that long, but price drifts, and at 13:30 the release spikes price straight into your target. If your firm counts closing inside the window, that winning trade can cost you the account.

Staying clear

1. Check the calendar before every trade, including currencies you aren't trading.
2. Close or tighten before the window if your trade is still open.
3. Use prop mode on this site. Add your firm, and every check shows its news window, with a countdown on the News page.

Key points

• News rules differ by firm, so learn yours exactly.
• Trades opened well before the news can still breach.
• Unknown rules should be treated as strict.