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Is Trading News Allowed with The Funded Trader?
Is Trading News Allowed with The Funded Trader?

Exploring our News Trading Policies at The Funded Trader

Updated over a week ago

Overview

While we do not allow news trading on any Royal, Rapid, Dragon, Standard, or Knight challenges or funded accounts, the Knight Pro & Royal Pro Challenges are an exception. News trading is permitted during both the challenge and funded phases for Knight Pro & Royal Pro accounts. However, traders should remain mindful of the heightened risks when trading during major economic announcements or high-volatility events.


  • We have news restrictions for 2 minutes before and after the release of a red folder event - this includes the opening / closing of market orders, execution of pending limit orders, and any take profit or stop losses that are triggered within this 4-minute window.

  • This rule applies to all instruments available on our simulated platform.


The violation process is as follows:

The violation process for News Trading violations is as follows:

  1. First and Second Warnings (Soft Breaches):

    1. You will receive up to two warnings per phase.

    2. For each violation, any net profits earned from trades executed within the restricted 4-minute window will be deducted from your account balance.

    3. Losses from the trades will remain unchanged and count toward the warning system.

  2. Third Violation (Hard Breach):

    1. Upon the third violation within the same phase, your account will be breached entirely, resulting in the termination of that account.

  3. Warnings Reset for Each Phase:

    1. Warnings reset at the start of each new phase (e.g., moving from Phase 1 to Phase 2 or from Phase 2 to a Funded Account).

    2. This means you start each phase with a clean slate regarding warnings, although deductions from violations in previous phases still apply.

  4. Profit Deduction and Phase Progression:

    1. If you pass a phase during the challenge despite violating the news trading rule, the profits from the trades in violation will be deducted from the balance of the next phase account.

    2. This deduction will also count as the first warning for the account in the next phase.

  5. Impact on Loss Limits:

    1. If any deductions from violations result in the account breaching the daily loss limit or maximum loss limit, the trader will be held responsible for the account breach.


Please review the restriction table below to see which pairs are prohibited during the following but not limited to news events:

INSTRUMENT

MACROECONOMIC EVENT

USD

NASDAQ

US30

US500

US OIL

GOLD

SILVER

  • Non-Farm Payroll

  • Unemployment Rate

  • FED Rates

  • FOMC Minutes

  • GDP q/q

  • CPI y/y

  • Crude Oil Inventories

  • Red folder government speeches (e.g., government official speaks)

  • ISM Services PMI

GBP

UK100

UK500

  • CPI y/y

  • Bank Rates

  • MPC Votes

  • Red folder government speeches (e.g., government official speaks)

EUR

DAX30

FRA40

GER30

  • Refinancing Rates

  • Red folder government speeches (e.g., government official speaks)

CAD

  • BOC Rate Statement

  • Overnight Rate

  • CPI m/m

  • Unemployment Rate

  • Employment Change

  • Red folder government speeches (e.g., government official speaks)

AUD

ASX200

  • RBA Statement

  • Cash Rate

  • GDP q/q

  • CPI q/q

  • Unemployment Rate

  • Employment Change

  • Red folder government speeches (e.g., government official speaks)

CHF

  • SNB Rate

  • Red folder government speeches (e.g., government official speaks)

NZD

  • RBNZ Rate Statement

  • Cash Rate

  • GDP q/q

  • CPI q/q

  • Unemployment Rate

  • Employment Change

  • Red folder government speeches (e.g., government official speaks)

JPY

JPN225

  • JPY Rate Statement

  • Cash Rate

  • GDP q/q

  • Unemployment Rate

  • Employment Change

  • Red folder government speeches (e.g., government official speaks)

  • It is important to note that any red folder events shown in Forex Factory that are not listed in the table above are still counted as news-restricted events. Please see all red folder events here by using the top right filter to only show events with a red "Expected Impact".

  • Note: Any "All Day" marked red folder events will not be counted as news-restricted events, as there are no specified times for the data releases.

To avoid confusion, it is best to avoid trading the specific instruments affected during high-impact news releases.

Please note that no compensation will be provided for trades executed during these periods, so it is crucial to manage risk carefully.


In case of any questions, please feel free to reach out to us via live chat messenger.

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