For traders with Instant Funding Accounts, news trading restrictions apply. These rules help maintain stability and protect capital during periods of high market volatility.
Restricted window: you may not execute or close any trades from 5 minutes before until 5 minutes after a high-impact news event. A violation is a soft breach and profits from those trades are deducted.
Prohibited News Trading Actions
For Instant Funding traders, it is prohibited to execute or close any trades 5 minutes before and 5 minutes after a high-impact news event (a 10-minute window). Restricted actions during this window:
Opening new trades (market execution or limit orders)
Closing trades (market execution or limit orders)
Opening or closing pending orders
Modifying Stop Loss or Take Profit
Placing Buy Stop or Sell Stop orders
Holding Trades Through News
You are allowed to hold trades that were opened more than 5 minutes before the restricted window. Be cautious, though: if your stop loss or take profit is triggered during the restricted window, it will be considered a violation. Any profits made from such trades will be deducted and will not be eligible for withdrawal.
News Trading Exception
If a trade was opened at least 5 hours before the news event, its Stop Loss or Take Profit may still be triggered within the restricted window without violating the rule.
Any manual closing of trades within the restricted window will still be considered a violation of the rule.
What Happens If the Rule Is Violated?
Violating the news trading rules is classified as a soft breach, meaning your account will remain open, but profits may be affected. You remain responsible for ensuring compliance with this rule, as violations may result in profits being deducted and multiple violations may lead to a hard breach.
High-Impact News Events
Only high-impact news events that are directly related to the trading pairs you are working with are restricted. You are free to trade during low or medium-impact news events or events that do not directly affect your trading pairs.
Please note: all major U.S. high-impact news events (marked as "Red Folder") affect all trading instruments. Examples include:
Federal Reserve Interest Rate Decisions
FOMC Statements and Meetings
Non-Farm Payrolls (NFP)
U.S. Consumer Price Index (CPI)
Any other high-impact U.S. news
In general, if it is a high-impact U.S. news event, it affects all trading pairs. For a complete list of high-impact news events, please refer to the news calendar we use: FXStreet.
Disclaimer
By continuing to hold trades during a major news event, you acknowledge and accept the potential risks involved. These risks include slippage, market gaps, delayed executions, and increased volatility. Top One Trader is not liable for any losses incurred due to slippage caused by news events.
By understanding and following these news trading restrictions, you can manage your Instant Funding Account effectively while minimizing risk during periods of high market volatility.