As anyone who has used FTMO knows, this firm does not allow its traders to open or close trades within 2 minutes of certain news events. In this article, we will look at which news events are restricted and why FTMO has made this rule.
FTMO is a Verified Prop Firm
What is the News Trading Rule at FTMO?
In the challenge phases, traders are permitted to trade around any news event and are not subject to this rule.
On live accounts, however, the rule is you cannot open or close a trade 2 minutes before or 2 minutes after any high-impact news event (see below). This includes any stop-loss or take-profit orders.
Any breaches of this rule will result in a violation and the account being suspended.
It’s important to note, this rule does not apply to swing trading accounts.
Why Does FTMO Restrict Trading Around the News?
The purpose of this rule is not only to protect the company’s profits but also to protect the trader from exceptionally risky positions.
Not only do certain news events create massive price fluctuations, but they also can have a huge impact on spreads and liquidity. Without this rule, many traders may face losing their funded account on such news releases.
What News Events are Restricted?
The news events that are restricted are those deemed “high-impact”. For example, the non-farm payroll often has one of the greatest impacts across many markets. Therefore, this is a restricted event. See the table below for an example of restricted events.
Where Can I See Restricted News Events in Real-Time?
It’s important to be fully aware of the news that will affect the markets on any given day. Therefore, FTMO provides a free calendar which outlines the news events and their likely impact on the markets. You can find it here:
You can also access the information here:
Don’t forget, you can also read more about this rule on the FTMO website.