Prop Firms Algorithmic & Financial Definition

News Trading Restrictions

Quick Definition

Prop firm rules restricting order execution within a window (usually 2 to 5 minutes) before and after high-impact economic news releases.

Detailed Explanation

Because releases like the US Non-Farm Payrolls (NFP), Consumer Price Index (CPI), and FOMC interest rate announcements cause massive slippage and liquidity blackouts, many prop firms restrict opening or closing trades around these releases.

Key Trading Rules & Takeaways

  • Typical restriction window: 2 minutes before to 2 minutes after high-impact events.
  • Violations can result in profit deductions or account termination.
  • Institutional EAs include News Filter APIs to pause trading automatically.
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Prop Firms Allowing News Trading →

Frequently Asked Questions

Which prop firms allow news trading without restrictions?

FTMO (Swing accounts), FundedNext, and FXIFY permit holding and executing trades during high-impact news.

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