Should a prop firm allow news trading?
Quick answer
Policies vary. Some firms allow news trading freely, some restrict opening or closing trades within a few minutes of high-impact releases, and some sell it as an add-on. Restrictions protect against spikes and gaps, but they require an economic calendar and are a common source of disputes.
Detailed answer
Trade-offs:
- Allow: simpler rules, more attractive to traders, but larger swings around releases.
- Restrict: reduces exposure to spikes, but needs a reliable calendar and precise timing rules.
If you restrict, define:
- Which events count (a named source and impact level).
- The window, for example two minutes either side.
- Whether it applies to opening, closing or holding.
- The consequence: rejected order, profit removed or breach.
PropExecutor does not currently enforce news restrictions: its news blackout rule is listed but unavailable, because it needs an economic calendar feed. Firms on PropExecutor either allow news trading or handle a news policy in their payout review.
If you allow it
Explain that spreads widen and prices can gap around major releases, so stops may fill at worse prices. Traders who understand that accept the outcome more readily.
Whatever you decide, put the policy on the rules page with the exact window and the source you use for event times.
PropExecutor team · Updated
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