Many prop firms restrict trading around high-impact news, typically for a window of a few minutes before and after the release. Trades opened or closed within that window may be disqualified, and profits made during it can be voided.
For scalpers who like news volatility, this closes a profitable door. For those who avoid news anyway, it's a minor inconvenience.
The details differ between firms, and the fine print matters. Does the restriction cover pending orders? Does it apply to closing trades as well as opening them? Which events count as high impact: the broker's own calendar, or a public one?
A trade opened five minutes before an event and still open when it hits can breach the rule, even if the trader forgot about the release. A calendar with alerts, set to warn thirty minutes ahead, prevents accidents.
How is the news rule tracked: from memory, or with automated alerts?
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News restrictions in funded accounts
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