High-impact events to watch.
- Central Bank Meetings (FOMC, ECB): Interest rate changes drive long-term trends.
- Inflation Data (CPI, PPI): High inflation often leads to hawkish central bank shifts.
- Employment Reports (NFP): The 'King' of volatility in the FX markets.
The danger of 'The Gap'.
During a news release, liquidity can disappear for milliseconds. If you have a stop-loss at 1.1000 and the price 'gaps' from 1.1005 to 1.0990, your order will be filled at the next available price (1.0990).
This is called negative slippage. For a funded trader, this means a trade could potentially lose more than the intended 1%. Always leave extra 'padding' in your daily drawdown to account for this.
Spread expansion.
Brokers often widen the 'spread' (the difference between Buy and Sell price) during news to protect themselves. A spread that is normally 0.5 pips might widen to 10 or 20 pips for a few seconds.
If your stop-loss is too tight, the spread expansion can take you out of the trade even if the price itself never reached your stop level.
The MixFunded advantage.
Many prop firms ban news trading or have '3-minute' rules where profits are voided if made during news. At MixFunded, we believe in true freedom. We allow news trading, EAs, and have no consistency rules.
This allows you to catch the big fundamental moves without worrying about technicalities—as long as you stay within the 3% daily drawdown limit.