News trading is one of the most challenging and misunderstood areas of proprietary trading. Most firms block traders from entering or holding positions around major economic announcements to avoid the chaos that follows.
FunderPro takes a different path. News trading is fully allowed during all Challenge phases, and funded traders can choose the Swing Add-On to trade through major releases without restrictions.
This guide explains how standard blackout rules work, how FunderPro’s flexible structure gives traders control, and which tactics will get you banned at any firm. Understanding these distinctions will help you protect your account and build a professional trading approach.
Introduction
A few moments in trading move markets faster than major economic releases. When reports like the Non-Farm Payrolls, Consumer Price Index, or Federal Reserve announcements drop, prices can move hundreds of points in seconds.
For retail traders, these moments create opportunity. For prop firms, they bring serious risk.
💡 Non-Farm Payrolls (NFP) is a monthly United States jobs report that regularly shifts currencies, indices, and commodities within seconds of release.
Most firms protect themselves by enforcing blackout windows that ban trading around such events. Violate those rules, and you risk losing your account instantly. But the truth is, disciplined traders can manage risk around news without reckless exposure. Blanket bans often punish skill instead of protecting capital.
FunderPro understands that difference. Instead of restricting traders with generic policies, it allows flexibility and rewards professional control. From unrestricted Challenge accounts to the Swing Add-On for funded traders, FunderPro gives traders the freedom to work their edge responsibly.
💡 (For more on how FunderPro supports traders, see Why FunderPro Is One of the Best Prop Firms in 2025.)
The Industry Standard Blackout: The Rules You Must Know
The 4–Minute Window
Most prop firms use the same rule: no trading two minutes before or two minutes after a scheduled high-impact news release. This four minute blackout applies to all positions.
‘Blackout Window’ refers to a short time period when traders must close or avoid positions to protect against extreme volatility.
Standard firm rules include:
- Do not open new positions inside the window
- Do not hold existing trades through the announcement
- Close all affected trades at least two minutes before the release
Which News Events Are Restricted
Firms apply this rule only to the most powerful economic releases, known as Tier 1 events, including:
- Non-Farm Payrolls (NFP) – U.S. employment data
- Consumer Price Index (CPI) – Inflation measurement reports
- Federal Open Market Committee (FOMC) – Interest rate decisions
- Gross Domestic Product (GDP) – Quarterly growth figures
💡 Key Term: Tier-1 Economic Release – A major economic announcement known to cause rapid market movement and spread widening across multiple asset classes.
These events historically cause wide spreads and instant market movement across major asset classes. Many firms publish their own news calendars, but traders are always responsible for managing exposure.
The FunderPro Advantage: Control in Your Hands
FunderPro believes that skilled traders should not be blocked by rigid rules. Its model allows traders to choose the structure that best suits their style.
Challenge Phase
- News trading is completely allowed
- No blackout restrictions
- You can trade through any release without penalty
Funded Accounts
Once funded, traders can choose between the Standard Account and the Swing Add-On, depending on how they trade.
| Account Type | News Trading Rules | Weekend Holding |
|---|---|---|
| Standard Funded Account (Pro or Classic) | Close trades two minutes before the news release | Not allowed |
| Any Funded Account with Swing Add-On | No restrictions. You may hold through any release | Fully allowed |
The Swing Add-On Explained
The Swing Add-On is built for traders who run longer positions or fundamental setups. It can be added to any challenge type: the One Phase, Two Phase Classic, or Two Phase Pro.
It removes all blackout restrictions and allows weekend holding. In return, leverage is adjusted to encourage responsible risk management. For example, on the Pro Challenge, leverage on Forex Majors changes from 1:100 to 1:30 when the Swing Add-On is activated.
This balance gives traders long-term freedom while keeping risk under control.
💡 (For specific figures, see the Swing Add-On Margin Reductions guide.)
Why It Matters
FunderPro’s flexibility matches your trading style.
- Short-term traders can use higher leverage on the Standard Account while respecting the four-minute rule.
- Position and swing traders can unlock unrestricted news and weekend freedom with the Swing Add-On.
💡 (For help choosing the right structure, read 1 Phase vs 2 Phase: Which FunderPro Challenge Fits You?.)
The Red Flags: Strategies That Get You Banned
Even with its flexible structure, FunderPro enforces strict fairness rules. Certain tactics are never allowed because they rely on system loopholes rather than trading skill.
Prohibited Strategies
Straddles and Strangles
Placing both buy and sell orders on the same instrument before a news release to profit from volatility is not allowed. This tactic creates artificial exposure and is considered system abuse.
Latency Arbitrage
Using delayed data feeds or execution delays between brokers to gain a risk-free advantage is strictly prohibited. It violates market integrity and leads to immediate termination.
Exploitative Tick Scalping
Algorithms that target the first few seconds after a release, when spreads are unstable, are not permitted. FunderPro allows genuine news trading but rejects methods that exploit price feed timing.
Traders who act with discipline can scale freely. Those who try to exploit systems lose access permanently.
💡 (For more on professional trading conduct, see Combating Overtrading: Mastering the Funded Challenge Through Discipline.)
Conclusion: Trade the News on Your Terms
News trading does not have to be a risk to your account. While most firms restrict every trader equally, FunderPro built a system that respects skill and choice.
Remember the essentials:
- Challenge Phase: News trading fully allowed
- Standard Funded Account: Close positions two minutes before the release
- Swing Add-On: No restrictions at all; trade through any release with adjusted leverage
- Universal Rule: No exploitative or manipulative strategies
If your trading edge depends on volatility or long-term positions, the Swing Add-On removes the limitations that most firms impose. If you prefer day trading and tighter control, the standard structure gives you higher leverage and simple rules to follow.
FunderPro puts control back where it belongs — with the trader.
Take the Next Step
Start your FunderPro Challenge today and trade the way professionals do. Add the Swing Add-On if you want full control and the freedom to trade around major releases. Your strategy deserves a platform that adapts to you, not the other way around.
