Can I trade during the news?
Can I trade during the news?
Yes, but there are specific restrictions during high-impact economic news events.
The Trading Restriction Window
Traders cannot open or close trades 2 minutes before and 2 minutes after a red folder news event release. This means:
- No opening new trades during the 2-minute window before or after the news release
- No closing existing trades during the restricted time window, including trades opened prior to the news event
- The restriction is outcome-based, not order-type-based. A trade closing in profit during the restricted window is a violation regardless of order type — this includes take-profit, break-even, pending orders, or a stop-loss that closes in profit. A stop-loss that closes at a loss during the restricted window is not a violation.
- All profits generated from trades closed during the restricted window will not count during funded stage
Example: If a red folder news event is scheduled for 14:30 UTC, the restricted trading window extends from 14:28 to 14:32 UTC. You cannot open or close any trades during this time, but you may close trades at 14:27 or 14:33.
Before the Restricted Window: You can set pending orders (buy limit, sell limit, etc.) before the news event. However, if a pending order is triggered (executed) during the 2-minute restricted window — for example, because a news spike causes price to reach your order level — this is still considered a violation on Standard accounts. The key factor is when the order executes, not when it was originally placed. Pending orders that execute outside the restricted window are not a violation.
Note: The 2-minute news restriction does not apply to Instant Funding, Buy Now Pay Later, or OMO Phase 1/Phase 2 accounts.
Account-Specific Consequences
- Challenge Accounts: Violating the news trading rule will result in a failed evaluation
- Funded Accounts: Any profits closed during the restricted window will be deducted from your account
- Repeated Violations: Your funded account may be flagged or breached
One-Time Free Retry After a News Trading Violation
If you violate the news trading rule on a challenge account, you may be eligible for a one-time free retry as a goodwill gesture. This offer is made on a case-by-case basis and is subject to the condition that you have understood the breached rule. To request it, contact support and explain your situation. If approved, a new challenge account — with identical normal trading conditions and no additional limitations — will be issued to you. This is a one-time offer per trader.
We have an auto-close feature where your trades are automatically closed when your target profit has been met. If your trades are closed during a news event, whether or not a take profit is set, it will be considered a violation of our 2-minute before and 2-minute after news trading time restriction. Traders who pass based on trades executed during these restricted times will not pass the challenge.
Account Types and News Trading Rules
Standard Accounts (1-Step, 2-Step, 3-Step Challenges)
The 2-minute news restriction applies during the challenge phase. Violating the restriction results in failed evaluation.
Standard Funded Accounts (1-Step, 2-Step, 3-Step)
After passing the challenge, the same news restriction applies. Any profits closed during the restricted window will be deducted from your account balance.
Instant Funding and Buy Now Pay Later Accounts
News trading restrictions do NOT apply. You can trade freely during all news events, including red folder news releases.
OMO Accounts
News trading is permitted during phases 1 and 2 with no restrictions. In the funded stage, news trading is allowed but any profit made during a news event is capped at 0.50% of your account balance. For example, on a $100,000 funded account, you can keep a maximum of $500 in profit from any single news event; anything above that will not count toward your balance. The 0.50% cap applies only to the restricted time window (2 minutes before and 2 minutes after the news release), not to the entire news day. Trades closed outside that window are not subject to the cap.
Overnight Positions
Yes, traders can hold trades overnight during both the challenge phase and funded phase. There are no restrictions on holding open positions over weekends or overnight periods.
What is considered Red Folder news?
Red Folder news events are high-impact economic announcements listed on ForexFactory. Only scheduled red folder news events trigger the 2-minute trading restriction. Tentative or unscheduled news does not trigger the restriction window.
Different Red Folder news impacts the rules for the pairs you might be trading. If the Red Folder News aligns with one of the pairs below, that will be implemented in our news trading procedures.
Affected Instruments:
Macroeconomic Announcements
ALL INSTRUMENTS
CPI; FOMC Statement; FOMC Meeting Non-Farm Employment Change;
XAUUSD | XAUUSD | XAGUSD | XAGUSD
All USD high impact news; All AUD high impact news; All CAD high impact news; All currency – Interest Rate decision + Press Conference all currency – CPI all currency – GDP Growth Rate all currency – CORE PCE USD (related to Forex, Commodities & US indices, US30, US100 US500).
USD
High impact news Unemployment Rate; Non-Farm Payrolls and Employment PMI; ISM; CPI; PPI; GDP Federal Funds Rates and Statements + Press conference; FOMC Balance of Trade Jobless Claims; Consumer Confidence/Sentiment; JOLTs Job Openings; Average Hourly Earnings; 10Y Note Auction; 30Y Bond Auction; Existing and New Home Sales; Durable Goods Orders; Speeches; Empire State Manufacturing Index; Retail Sales Core PCE
EUR
(FOREX Only, EU Indices) PMI; CPI; GDP Employment Change; Unemployment Rate; Retail Sales; Balance of Trade; ECB Rates and Statements + Press conference; Deposit Facility Rate; Economic Sentiment Index; Business Climate Consumer Confidence Speeches;
GBP
(FOREX Only) PMI; CPI; GDP Nationwide House Prices Mortgage Approvals; Retail Sales; Retail Price Index; Housing Price Balance; BoE Rates and Statements + Press conference; Trade Balances Industrial and Manufacturing Production; Unemployment Rates; Employment Change Claimant Count; Change Consumer Confidence Speeches
CAD
(FOREX, Oil) BoC Rates and Statements + Press conference; PMI; CPI; GDP International Merchandise Trade; Wholesale Sales Housing Starts Balance of Trade Employment Change; Unemployment Rate Retail Sales Speeches;
AUD
(FOREX, Indices) Cash Rate & RBA Statement + Press conference Employment Change/Unemployment Rate; CPI; GDP Retail Sales Speeches;
NZD
(FOREX Only) Official Cash Rate & RBNZ Rate Statement + Press conference; Employment Change/Unemployment Rate; CPI; GDP Speeches;
CHF
(FOREX Only) CPI; GDP; SNB Policy Rate + Press conference Speeches;
JPY
(FOREX, Asian Indices) PMI; CPI; GDP Monetary Base Leading Economic Index Japan to Sell Bonds; Industrial Production Merchandise Trade; Balance BoJ Rates and Statements + Press conference; Retail Trade Consumer Confidence Balance of Trade Speeches
USOIL.PRO/RAW | UKOIL.PRO/RAW | ALL CAD HIGH IMPACT NEWS
Crude Oil Inventories
Updated on: 30/09/2026
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