News trading at a prop firm: what Core Funded allows and when

If you trade the big economic releases, the first thing to check at any prop firm is how it handles news. At Core Funded, a news trading prop firm in the full sense, the answer depends on where you are: during the challenge news trading is fully allowed, with no lockout at all. On the funded account, a short lockout applies by default from 5 minutes before to 5 minutes after high-impact news, unless you add the News Trading upgrade when you buy your account.

This guide explains each case, shows what happens to a trade placed inside the window, and walks through how to plan a news strategy around the rest of the rules.

News trading during the challenge

During the challenge, news trading is fully allowed. There are no lockout windows and no restrictions around releases. You can open, hold and close positions before, during and after any event, including FOMC.

That applies to every evaluation: the 1-Step Challenge with its 10% profit target, the 2-Step Challenge with 10% in phase 1 and 5% in phase 2, and 2-Step Flex. The usual account rules still apply in full, so a news spike that pushes your equity through the daily loss limit or the drawdown floor ends the account the same way any other loss would.

News trading on a funded account: the 5-minute lockout

On the funded account, news trading is allowed as well. By default, only a short lockout window around high-impact news applies.

What the lockout covers

• 5 minutes before and 5 minutes after high-impact news events, the red-folder events in the economic calendar.
• FOMC speeches, statements and releases are covered too.
• Inside that window you may not open or close positions.

All times are in UTC. Your dashboard shows trade times in your local time zone for reference, but the UTC timestamp is what counts.

What happens if you trade inside the window

A trade opened or closed inside the lockout does not breach your account and does not get it suspended. Instead, all profits from that trade are removed. You keep the account; you just don't keep the gain from that trade.

This also means a position that is already open when the window starts can stay open. The rule is about opening and closing inside the window, not about holding through it.

The News Trading upgrade

If news releases are a core part of your strategy, you can add the News Trading upgrade at checkout. It removes the lockout window entirely:

• You can trade before, during and after high-impact news.
• It applies to all instruments, including FOMC events.
• It covers your whole account, including the funded phase after you pass.
• You select it once, when you buy your challenge or instant account.

On the regular checkout, the upgrade costs 10% of the account price. Because it can only be chosen at purchase, decide before you buy whether news is part of how you trade.

Challenge vs. funded vs. upgrade at a glance

An instant funded account starts funded, so the default lockout applies from day one unless you add the upgrade at checkout.

Worked example: a news trade on a $100,000 funded account

Say you trade a $100,000 funded account from the 1-Step Challenge without the upgrade. A high-impact release is scheduled for 12:30 UTC. Your lockout runs from 12:25 to 12:35 UTC.

• Trade A: You open a EURUSD position at 12:10 and close it at 12:50 for $900 profit. Both the open and the close are outside the window. The $900 counts normally.
• Trade B: You open at 12:32, right after the release, and close at 12:48 for $600 profit. The open falls inside the window. The $600 is removed. Your account is not breached.
• Trade C: You open at 12:20 and close at 12:33 for $400 profit. The close is inside the window, so the $400 is removed.

With the News Trading upgrade, all three trades would count, $1,900 in total. At the standard 80% profit split, that is $1,520 for you when you request a payout.

How news trades fit the other rules

News moves fast, and the risk rules don't pause for it. Plan for these:

Daily loss and static drawdown

The maximum daily loss is 3% on Instant and 1-Step, 5% on 2-Step, and 2-Step Flex has none. It is calculated at 00:00 UTC from the higher of balance or equity, and open losses count. The maximum total loss is static: on a $100,000 account the floor sits at $95,000 on Instant, $94,000 on 1-Step, $92,000 on 2-Step and $88,000 on 2-Step Flex. A sharp move against you during a release counts toward both limits immediately. The static drawdown page explains how the fixed floor works.

Stop loss and hedging

A stop loss is not mandatory, and hedging is allowed on the same account. Martingale is not allowed. Around news, many traders still use a stop, because a fast spike can take equity through a limit before you can react.

The consistency rule

When you request a payout, no single day may make up more than 15% of your total profit on Instant, or 30% on 1-Step and 2-Step. A big news day can push you over that share. On a 1-Step account with $5,000 total profit, a single day may contribute at most $1,500. If one news day brought $2,000, you keep trading until your total profit reaches about $6,667, at which point $2,000 is 30% of the total. Your account is not at risk; the payout simply waits.

High-risk practices

Excessive margin use (more than 50% of available margin) and all-or-nothing trades where one trade could wipe out the account are prohibited under the trading rules. A news straddle at full size can cross that line quickly.

Planning a news strategy at Core Funded

• Use an economic calendar. Note the red-folder events and FOMC dates for the week and convert their times to UTC.
• Decide on the upgrade before you buy. If you trade releases regularly, the upgrade saves you from having trades stripped of profit after you are funded.
• Size for the spike. Spreads widen and prices jump around releases. Keep your size small enough that a gap against you stays well inside your daily limit.
• Mind the close, not just the open. Without the upgrade, closing a position inside the window also removes its profit. Set targets so trades are closed before the window or after it ends.
• Think about the payout. A single huge news day can delay a payout through the consistency rule, so steady results across several days work better.