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South AfricaNews Trading (Prop Firm)
The practice of executing trades around major economic data releases. Many prop firms restrict or ban this strategy due to the elevated volatility and execution risk.
Detailed Explanation
News trading involves opening or closing positions immediately before, during, or after high-impact economic releases such as Non-Farm Payrolls (NFP), FOMC rate decisions, CPI data, and GDP reports. Prop firms restrict it because sudden volatility can cause rapid drawdown breaches, widened spreads, and slippage. Some firms allow news trading entirely (E8 Markets, Goat Funded Trader), some restrict it within a window (e.g., no trades 2 minutes before/after), and others ban it outright. Always check the firm's specific news trading policy before buying a challenge.
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