News Trading on Prop Firms — Which Firms Allow It?
Complete guide to news trading policies across prop firms. Find which firms allow, restrict, or ban trading during high-impact economic events.
Why News Trading Is Controversial
High-impact news events (NFP, FOMC, CPI) cause extreme volatility and wide spreads. Prop firms worry about uncontrolled risk exposure during these events. Some traders exploit news volatility for quick profits, while others get stopped out by whipsaw price action.
Three Types of Policies
Fully Allowed: Trade freely before, during, and after news events. Restricted: No new positions within 2-5 minutes of high-impact news, but existing positions can remain open. Fully Banned: No trading activity allowed within a 5-15 minute window around major news releases.
How to Check Firm Policies
MindedTrader clearly labels each firm's news trading policy in our comparison tables. Look for the 'News Trading Allowed' indicator. For restricted firms, we detail the specific time windows and conditions that apply.
News Trading Strategies
If news trading is allowed, focus on the second-leg move (5-15 minutes after release) rather than the initial spike. Use wider stops to account for spread expansion. If banned, simply close all positions 15 minutes before the event and wait 15 minutes after.
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