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Based in Exeter - working across prop trading firms worldwide

Glossary · Evaluations

News trading rule

  • Also called
  • news trading restriction
  • high-impact news rule

What it means

In a prop firm, the news trading rule limits activity around releases such as central bank decisions or major employment data. The common form bans opening or closing positions within a set number of minutes before and after the release; the consequence ranges from removing the profit on those trades to a hard breach.

Firms restrict news trading because price gaps and spread widening around releases make simulated fills less realistic, and because some strategies exist only to exploit that gap. Many firms allow news trading in the evaluation and restrict it only in the funded stage.

The rule needs a defined calendar source, a defined list of covered events and instruments, a defined time window, and a defined penalty.

Related terms

Read these next.

The website

Rules page

A prop firm rules page is the single, canonical explanation of every evaluation and funded-stage rule, with definitions, worked examples and an update date.
Evaluations

Weekend holding rule

A weekend holding rule decides whether a trader may keep positions open over the weekend market close, and what happens to positions that are still open.
Evaluations

Simulated funded account

A simulated funded account is the post-evaluation account a prop firm gives a trader: trades run in a simulated environment and the firm pays performance rewards on results.
Risk and drawdown

Risk engine

A risk engine is the software that watches every prop firm account in real time, enforces loss limits and rules, and flags prohibited trading behavior.
The website

FAQ center

A prop firm FAQ center is the searchable help section that answers trader questions on rules, payouts, platforms, KYC and payments before they reach support.

On your website

Where this shows up on a prop firm site.

Feature

Challenge pricing table

The table traders compare first: program, size, price, target, daily and maximum loss and split, readable in ten seconds on a phone.
Feature

Rules pages

Rules a trader can read one way: one page per rule, worked examples from your own numbers, and a table of which rules apply to which plan.

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