Can I trade news?

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Can I trade news?

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In the FTMO Challenge and Verification, you can hold trades during news releases. However, you cannot scalp the news or use a straddling method (catching news spikes using stop orders).

It may seem those significant price movements on macroeconomic reports have great potential for profit, but it is very important to emphasize that trading on DEMO accounts does not respect real market liquidity. The whole straddling situation usually looks like this:

Before the macroeconomic report, the trader places limit/stop orders for buying and/or selling. The trader doesn’t care whether the report release is positive or negative. The trader on a demo account gets filled exactly on the specified limit or stop order price, whereas, in the real market environment and on the live accounts, this is not possible due to a surge in volatility and reduced liquidity. Moreover, slippages and the copying latency needs to be taken into account in the fast-moving market reactions. The picture below shows that the trader entered a sell stop order to sell and received a totally unrealistic fill. Therefore, such positions would be removed from your trading account, regardless of whether you trade in the FTMO Challenge, Verification or the FTMO Account. This practice, along with others, is also described here: https://ftmo.com/en/trading-according-to-the-real-market/.

Following is the trade restriction table for our FTMO Traders with specific types of reports and instruments. Only our FTMO Traders are not allowed to execute any new trade or close an existing trade on the targeted (as per the table) instrument in the window of 2 minutes before till 2 minutes after the release of the below news announcements. To clarify, we define executing a trade as opening or closing either a pending order (including stop loss or a take profit) or market execution. You are allowed to hold your trade(s) on the targeted instrument(s) that were opened more than 2 minutes before the restricted news event. But be reminded if your stop loss or take profit is activated/filled during the restricted time window of 2 minutes before till 2 minutes after, it may be taken as a violation of the FTMO Account Agreement. 

The other non-targeted instruments can be traded normally. E.g. You can trade EURGBP or AUDNZD during the NFP release. However, you should not open or close USDJPY or GBPUSD in the window of 2 minutes before to 2 minutes after the NFP release. 

The news releases schedule can also be monitored in our Economic Calendar, where these restricted events are marked by a blue background fill:

Please note again, these restrictions on trading during the restricted news events do not apply to FTMO Challenge or Verification accounts.