News Trading Restriction

A news trading restriction bars opening or closing positions around scheduled high-impact releases — typically a window of two to five minutes either side of the print. Prop firms impose it because spreads widen and slippage becomes unpredictable at those moments, and because a coin-flip trade sized correctly is an efficient way to pass a challenge. Brokers occasionally impose it for the same execution reasons. Check three things: which events count, how wide the window is, and what the penalty is — a warning, a voided trade or a closed account are very different consequences for the same mistake.