News Trading Ban
Also known as: news ban, high-impact news restriction, no news trading
Direct Answer
A news trading ban restricts opening or closing positions around high-impact economic releases such as nonfarm payrolls, CPI, or rate decisions. Firms enforce buffers of two to five minutes before and after the print to limit slippage exploitation. Violations typically void any profit on the trade and may breach the funded account.
News bans exist because prop firms don't want traders exploiting wide spreads and broker slippage around scheduled events. The rule is normally tied to a public economic calendar with a defined impact rating.
Common windows: 2 minutes either side on forex challenges, 5 minutes on funded accounts. Some firms only enforce on the news currency pair; others ban any open position during the window.
Which firms enforce this rule
| Firm | Strictness |
|---|---|
| The5%ers | Strict |
| FundedNext | Standard |
| MyFundedFX | Lenient |
Example scenarios
Scenario
Trader opens EUR/USD 90 seconds before NFP release on a firm with a 2-minute buffer.
Outcome
Trade is closed by the firm and any profit is removed from the account.
Scenario
Trader holds a USD/JPY position from earlier in the day when CPI prints; firm rule bans 'open during news'.
Outcome
Position counted as a breach trade; profit voided.
Frequently asked questions
Which news events count?
Is the buffer before only or both sides?
Can I hold through news if I opened earlier?
Does this apply during the evaluation only?
What's the penalty for a breach?
Related rules
Weekend Hold
A weekend hold rule controls whether traders can keep positions open through Friday close into Monday open. Many prop firms ban weekend exposure to limit gap risk, requiring all trades to be flat before market close. Holding through the weekend on a no-hold account typically counts as an immediate rule violation and account breach.
EA Allowance
EA allowance describes which expert advisors, automated bots, or copy-trading tools a prop firm permits on funded accounts. Most firms ban high-frequency, latency-arbitrage, tick-scalping, and shared commercial EAs while allowing custom indicators or risk-management bots. Always confirm specific software with support before deploying it, since unauthorized automation can void profits.