News Trading Restriction

A news trading restriction is an evaluation rule imposed by prop trading firms that prevents traders from opening or holding positions during scheduled high-impact economic events. Common restricted events include Non-Farm Payrolls (NFP), central bank interest rate decisions, CPI releases, and GDP announcements. The restriction typically applies within a window of 2 to 15 minutes before and after the event.

Prop firms implement news trading restrictions because major economic releases create extreme volatility and slippage that can distort evaluation results. A trader who bets on a single NFP release might hit their profit target or breach their daily loss limit in seconds—neither outcome reflects the consistent trading ability that prop firms want to fund. The restriction works alongside other rules like minimum trading days and the consistency rule to filter for repeatable strategies.

For affiliates promoting prop firm programs, news trading restrictions affect conversion messaging. Some traders specifically seek programs without news restrictions, while risk-averse traders view the restriction as a sign of a well-managed firm. Understanding which programs restrict news trading helps affiliates segment their audience and tailor creatives to different trader profiles.

Not all prop firms apply news restrictions uniformly. Some ban trading entirely during news windows, others only restrict new position entries while allowing existing positions to remain open, and some apply the restriction only during the evaluation phase but not on funded accounts.