What Is News Trading in Prop Firm Challenges?

News trading means opening or holding trades during high-impact economic events (like NFP, CPI, interest rate decisions) to capture large, fast price moves.

Why Do Prop Firms Restrict News Trading?

Extreme volatility can create slippage and huge risk for the firm.
Traders can “gamble” on one event instead of showing consistent skill.
Liquidity during news can be thin, causing abnormal fills and gaps.

Common News Trading Rules

No opening new positions X minutes before/after major news releases.
No holding certain instruments (like USD pairs, indices, gold) through scheduled news.
Instant failure if you violate the restriction.

Why “News Trading: Yes” Is Important

If a firm allows news trading, it means you can trade macro events and volatility spikes legally without breaking rules. This is valuable for traders who specialize in fundamental catalysts.

Key Takeaway

News trading permission tells you whether you can trade during big economic releases. If you rely on volatility, choose a prop firm that allows it.