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- News Trading Policy/Rule and Restriction?
News Trading Policy/Rule and Restriction?
In Depth understanding about Trading during High Impact News
- Written by ThinkCapital
News Trading Policy
General Rule
News trading is not allowed on any Simulated funded accounts.
Simulated Challenge Accounts
During the simulated challenge phase, news trading is permitted. Traders can engage in news trading activities without restrictions. However, we closely monitor account behavior, particularly looking for instances where a trader rapidly passes the challenge phase in a few seconds with a high lot size due to news trading. If such behavior is detected, the account may be reverted back to phase-1 for review.
Simulated Funded Accounts
During the simulated funded phase, news trading is prohibited unless the news trading add-on is purchased during the challenge phase. Detailed explanation below:
News Trading Rules for Simulated Funded Accounts
High-Impact News Events
No trades, including limit and stop orders, may be executed 2 minutes before and 2 minutes after a high-impact news event (total of 4 minutes).
Trades opened before this 4-minute window can be held, but no account activity (closing trades, executing trades, stop loss hits, take profit hits) is allowed during this time.
Any activity during this 4-minute window will result in immediate termination of the funded agreement, account cancellation, and forfeiture of any profits.
You are not allowed to trade any pair during news events marked with a red folder on ForexFactory.
Red Folder News
For high-impact news events, only Red Folder news needs to be avoided. You are not permitted to trade any pair during these Red Folder news events. Follow the calendar and Red Folder news from ForexFactory.
Note: “All Day” marked red folder events will not be counted as news-restricted events since there are no specified times for the data releases.
Exception for News Trading ADD-On
If you purchase your account with the News Trading ADD-On, news trading will be allowed in both the challenge phase and the funded account phase. The above restrictions will not apply to these accounts.
