Prop Firm News-Trading Rules: Holding
News-trading rules are one of the most misunderstood parts of a prop firm's terms — and one of the easiest ways to lose a funded account without realizing you…
News-trading rules are one of the most misunderstood parts of a prop firm's terms — and one of the easiest ways to lose a funded account without realizing you broke a rule. The mechanics vary firm to firm, but the underlying risks (slippage, spread widening, and execution restrictions) are universal.
Why Firms Restrict News Trading At All
High-impact economic releases (NFP, CPI, FOMC rate decisions) can move price dozens of pips in seconds, with brokers widening spreads and slippage spiking well beyond normal conditions. From a risk-management standpoint, a firm evaluating traders on a simulated account has to protect against:
- Slippage-driven false profits — a trade that "wins" on the platform due to a favorable slip that would not reproduce in live market conditions.
- Correlated blow-up risk — multiple trades opened right before a release, all moving against the trader simultaneously.
- Gaming the target — using leveraged directional bets around scheduled volatility instead of a repeatable strategy.
Two Common Rule Models
- Execution-window restriction — orders cannot be opened within a defined window before/after a scheduled high-impact release (commonly 2 minutes before to 2 minutes after), but holding an already-open position through the news is allowed. Profits generated by trades opened inside the restricted window are typically voided/deducted from the target; losses are absorbed by the trader.
- Full restriction on specific strategies — some programs disallow "bracket" orders around news (simultaneous buy-stop and sell-stop entries designed to catch the breakout in either direction) even if regular directional trading during news is otherwise permitted.
What to Check Before You Trade Any News Event
- Exact time window — "2 minutes before to 2 minutes after" is a common industry standard, but always confirm your specific program's window rather than assuming.
- Time zone / server time — restrictions are calculated on server time, not your local time zone.
- Which releases count as "high-impact" — most firms reference a standard economic calendar (e.g. Forex Factory) rather than defining their own list.
- Holding vs. opening — many firms distinguish between holding an existing position through news (often allowed) and opening a new one inside the window (often restricted).
Comparing Firms on This Rule
When comparing prop firms specifically on news-trading flexibility, look past the marketing headline ("news trading allowed!") and check the actual execution-window mechanics — a firm that "allows" news trading but voids profits from trades opened in a 4-minute window is meaningfully different from one with no restriction at all.
For The5ers' exact policy — including the program-specific differences between Instant Funding/Bootcamp and High Stakes — see the complete breakdown in The5ers News Trading Rules.
Check The5ers News-Trading Limits →
FunderPro News Rules & Program Context
Affiliate disclosure: hnlgrowth.com has an affiliate relationship with FunderPro. If you purchase through our link, we may earn a commission at no extra cost to you. This does not affect our editorial assessment.
When trading with FunderPro, news trading permissions depend on the selected program architecture and stage:
- Evaluation Challenges (Classic, One-Phase, Pro): News trading is generally permitted during the evaluation phases, allowing traders to execute setups without strict calendar blackout windows, provided general risk management rules (such as max daily loss) are respected.
- Funded Accounts & Swing Add-Ons: Traders who prefer holding trades through major news releases or over weekends can utilize specific options like the Swing Add-On or Swing account setups, which adjust parameters such as leverage to accommodate market gap risk safely. For full details on evaluation setups and account management, consult our funderpro rules guide.
If you are considering evaluating your trading strategy with FunderPro, you can use coupon code HNLTRADING at checkout for a partner-verified 15% discount on challenge fees.
Explore the FunderPro Decision Guide & Save 15% →
Code hnltrading for 15% off. Rules and pricing can change — verify at the official FunderPro site before purchasing.
Risk Disclaimer
Prop trading evaluations involve risk of capital loss. Evaluation fees are non-refundable if you breach the account rules. Funded accounts operate in simulated trading environments — payouts depend on each firm's policies and are not guaranteed. Past performance in an evaluation does not guarantee consistent returns on a funded account. Always read the full terms and conditions of any program before purchasing. This article is for educational and informational purposes only and does not constitute financial advice.
Checked on: 2026-07-24. Rules and pricing can change. Always verify at the official The5ers site before purchasing.
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Risk disclaimer: Challenge fees are non-refundable if you breach the rules. Prop trading involves significant financial risk. Past performance in a simulated environment does not guarantee results on a funded account. Only purchase if you understand the rules fully and can afford to lose the fee. Affiliate disclosure: HNL Growth earns a commission when you purchase a HashHedge challenge through links on this page.