TPThe Trading Playbook

Updated 2026-03-08

FundedNext News Trading Policy Rule Explained

FundedNext
Quick Answer

FundedNext allows news trading on all high-impact economic events during Challenge and Funded phases.

Unlike many prop firms, FundedNext permits trading during major economic releases like NFP, FOMC, and CPI announcements. This policy applies to all account sizes and phases without restrictions. There are no consequences for news trading as it's fully permitted, but standard risk management rules still apply.

Key Rule Details

Policy
Allowed
Detail
News trading allowed
Applies To
All high-impact news (NFP, FOMC, CPI)
Enforcement
Automated — breach triggers account review
Phases
Challenge and Funded

Calculation Example

Account Size: $100,000News Trading Policy: No restriction
Account Size$100,000
News Trading Policy LimitNo restriction
Scenario: Closed P&LNFP release at 8:30 AM ET
Scenario: Floating P&LTrading permitted
Total ExposureNo action required
Remaining BufferFull freedom
Limit used:0%

Common Mistakes

Assuming news restrictions exist
Many traders avoid high-impact news events thinking FundedNext prohibits it, missing profitable opportunities. Since FundedNext explicitly allows news trading, traders can capitalize on volatility during NFP, FOMC, or CPI releases. This misconception causes traders to unnecessarily limit their trading strategies during some of the most volatile market periods.
Ignoring maximum daily loss
Traders exploit the news trading freedom but forget the 5% daily loss limit still applies. On a $100,000 account, hitting -$5,000 during volatile news events will breach the account regardless of news trading being allowed. The freedom to trade news doesn't override fundamental risk management rules.
Overleveraging during news events
Traders increase position sizes dramatically during news releases, thinking the policy protects them from violations. A trader on a $50,000 account risking $10,000 on NFP could easily hit the 5% daily loss limit ($2,500) within seconds. News trading permission doesn't eliminate the need for proper position sizing during high-volatility periods.
Confusing with other firms
Traders apply restrictive news trading rules from other prop firms to FundedNext accounts unnecessarily. Many firms ban trading 2-5 minutes around major releases, but FundedNext has no such restrictions. This confusion leads traders to close positions or avoid trading during potentially profitable news events when they could legally continue trading.

Protection Strategies

Trade news with standard risk management
Since FundedNext allows news trading, use normal position sizing without special restrictions. Risk the same 1-2% per trade during news events as regular trading sessions. This maximizes the advantage of FundedNext's permissive policy while maintaining account safety through consistent risk management practices.
Scale position sizes for news volatility
Reduce position sizes by 50% during major news events to account for increased volatility while staying within daily loss limits. On a $100,000 account with a $5,000 daily limit, risk maximum $1,000 per news trade instead of normal $2,000. This allows participation in news events while protecting against rapid adverse movements.
Set tight daily loss alerts
Configure alerts at 3% daily loss to monitor proximity to the 5% limit during volatile news trading. This provides a 2% buffer before hitting the actual daily loss threshold. Early warnings help traders reduce exposure or exit positions before breaching the daily loss rule during high-impact events.
Focus on post-news continuation moves
Trade the sustained moves following initial news spikes rather than the immediate reaction to avoid extreme volatility. Enter positions 5-10 minutes after major releases when initial volatility settles but directional moves continue. This strategy leverages FundedNext's news trading freedom while reducing exposure to unpredictable initial market reactions.

Related Rules

Maximum Daily Loss
5%
Maximum Total Loss
10%
Profit Target (Phase 1)
8%
Profit Target (Phase 2)
5%

FundedNext Comparisons

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on FundedNext's official website before purchasing a challenge. Updated 2026-03-08.