Prop trading accounts
Why do prop firms prohibit trading during high-impact macroeconomic news releases (e.g., NFP, FOMC)?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Prop firms restrict trading around high-impact news like NFP or FOMC because extreme volatility and slippage risk can trigger rapid drawdown breaches.
How it works
Spreads widen and liquidity thins during news releases, increasing the chance of adverse fills that could violate a firm's daily loss or drawdown rules.
An example
Trading is blocked five minutes before and after FOMC.
Risk & limitations
Blackout windows and enforcement differ by firm and are not regulator-set.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.