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Rules Explained

Trading Around the News: Why Some Rules Pause You

Marcus Hale Marcus Hale, Trading Rules Lead June 13, 2026 5 min read
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If you have ever been told you cannot trade in the minutes around a major economic release, it can feel like the firm is taking away your best opportunity. After all, the news is where the big moves are. But that is exactly the point. The moves around scheduled news are not opportunities so much as coin flips with the volume turned up. News-trading restrictions exist because releases can gap price through stops, and the CFTC cautions traders to understand markets before reacting to news; leveraged exposure into data, the CFTC notes, can produce losses beyond your margin.

What the rule covers

News restrictions typically pause new trades for a short window around high-impact scheduled events, things like central bank decisions or major economic data. The specifics differ by program, but the shape is the same: a brief no-trade window before and after the release.

Why it exists

Around a big release, two things happen at once that wreck normal risk control. Prices can gap, jumping straight past your stop so you exit far worse than planned, and spreads can widen, so entries and exits get expensive and unpredictable. In those seconds the market is not really tradable in the disciplined sense. Your stop is a suggestion, not a guarantee.

The honest framing: this rule is not hiding the good trades from you. It is keeping you out of the one environment where your risk management temporarily stops working. That protects your account and the firm's capital at the same time.

How to plan around it

  • Know the calendar before the session. A quick look at the economic calendar tells you when the no-trade windows are. Surprises only happen to traders who did not check.
  • Be flat into the window if needed. If a release lands while you are in a trade, understand the rule for open positions and plan your exit before the event, not during it.
  • Treat the pause as built-in patience. The window is a forced break from exactly the kind of impulsive trade that tends to hurt. Use it.
  • Trade the aftermath, not the spike. Once spreads normalize and a real trend establishes, conditions become tradable again with your usual discipline.
Around a news windowWhy
Know the economic calendar before the sessionThe no-trade windows are predictable, so surprises are avoidable
Be flat into the window if neededPlan your exit before the event, not during it
Trade the aftermath, not the spikeWait for spreads to normalize and a real trend to establish

Illustrative. Specific news-trading rules and windows vary by program; confirm them in your account terms.

The reframe

Sitting out the news is not missing out. The traders who blow up on release days are almost never the ones who waited. A short pause around a handful of scheduled events costs you very little and removes one of the few moments where a single trade can do outsized, uncontrollable damage.

Frequently Asked Questions

What are news trading restrictions?

They're rules that pause or limit trading around high-impact scheduled news, such as major economic releases. During the restricted window you typically can't open new positions — and sometimes must reduce exposure — until the event has passed.

Why do funded accounts restrict news trading?

Because news events can gap price violently with little liquidity, producing outsized losses that don't reflect skill. The restriction protects both the trader and the firm from the randomness of a report-driven spike blowing through stops.

How do I plan around a news restriction?

Check the economic calendar and know the restricted windows before you trade. Close or size down positions ahead of a covered release, and treat the pause as a scheduled break rather than a missed opportunity.

Does the restriction apply to all news?

Usually only to specific high-impact scheduled events defined by your program, not every headline. Confirm your account's exact list, since the covered events and the length of the pause vary between firms.

Can I hold a position through a news event?

That depends on your program's rules — some allow holding existing positions but block new entries, while others require reducing exposure. Always verify your account's specific policy before a covered release.

What are news-trading restrictions in a funded account?

News-trading restrictions limit or prohibit opening and closing positions around high-impact economic releases, because the gap risk can breach a daily loss limit in seconds. Some programs require you to be flat before major data. Confirm which events are restricted in your rules.

Why do funded accounts restrict news trading?

Because scheduled releases can gap price violently, jumping through stops and blowing past loss limits in a way the firm cannot manage. Restricting news trading protects the account. If your program allows it, size sharply smaller and know exactly which events are covered.

TradeFundrr provides a structured, simulated trading environment. Specific news-trading rules and windows vary by program. Nothing here is a guarantee of profit or trading results. The focus is development, discipline, and a clear path to funding for traders who follow the rules.

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