Back to Learning Hub
Execution Rules • Visual Master Guide

News Trading & Execution Buffers

Restrictions on opening or closing positions during high-impact macroeconomic announcements.

Prop firms hedge risk by preventing high-volatility slippage during red-folder events like NFP, CPI, and central bank interest rate decisions. While many firms allow holding existing trades, opening new orders or executing stops within 2 minutes of the release is prohibited.

5 min • Interactive Live visual Test in Simulator
Verified vs official FAQ & Terms

Applies to 2 firms • Execution Rules

Prev: Trailing Drawdown vsNext: Trading Consistency

Deep Dive

Why this rule exists

Prop firms hedge risk by preventing high-volatility slippage during red-folder events like NFP, CPI, and central bank interest rate decisions. While many firms allow holding existing trades, opening new orders or executing stops within 2 minutes of the release is prohibited.

How traders get caught

This rule is often buried in FAQ or enforced only on funded accounts — not on the pricing page. Marketing says "allowed", FAQ says "2-min buffer" around red-folder news. Our engine flags it as Easy-to-Miss.

How to stay safe

Check the Source Inspector for the exact FAQ excerpt, flatten or halve size into the ±2-min window, and cancel pending stop orders before red-folder releases.

The Formula

How it is calculated

Execution Restriction Window = Event Time ± 2 Minutes

Real Dollar Example

For US CPI at 08:30:00 EST, no trades may be executed between 08:28:00 and 08:32:00 on funded accounts.

Common Traps & Mistakes

1

Assuming "News Trading Allowed" on the marketing page applies unrestricted to funded accounts.

2

Leaving pending limit or stop orders active that get triggered by sudden news spread spikes.

Firms using this rule

Goat Funded Trader 2-min buffer before/after red foFTMO 2-min window on Normal Challenge
Compare firms →