FundedNext allows traders to trade during news events in both the Challenge Phase and the FundedNext Account. However, when trading on a FundedNext Account during high-impact news events, a specific News Profit Split Rule applies, as outlined below.
News Profit Split Rule for FundedNext Accounts:
Time Window: Trades executed 5 minutes before and 5 minutes after a listed high-impact news event (a total 10-minute window) will be subject to the News Profit Split Rule.
Profit Calculation: 40% of the profit from these profitable trade(s) will be counted toward the trader’s account balance.
Applicable Trade Types: This rule applies to both Market Execution (Opening/Closing) and Pending Orders (including Take Profit and Stop Loss).
Loss Responsibility: Any losses incurred during this period remain the trader’s responsibility and will not be removed.
Clarifications on News Trading Rules:
The News Profit Split Rule applies only to Stellar 1-Step, Stellar 2-Step, and Stellar Lite FundedNext Accounts.
Challenge Accounts are not subject to this rule.
Partial Order Closure: If a trader closes a portion of an order, the entire order will be affected, and only 40% of the profit from the profitable trade(s) will be counted.
Impact on Account Metrics: The adjusted profit calculation may reduce the account’s net profit.
Calculation of News Profit Split
The calculation for the News Profit Split will take place after the cycle ends.
Example Calculation:
After the cycle ends, a trader makes a $10,000 profit, excluding profits from news trades. This $10,000 profit includes any losses from news trades. Additionally, the trader makes a $3,000 profit from profitable news trades.
As per the news profit split rule, 40% of the $3,000 profit will be counted, which equals $1,200. The trader’s total profit will be:
$10,000 (excluding news trades) + $1,200 (news profit split) = $11,200 total profit.
Starting the Next Cycle After News Profit Split Adjustment
If a trader’s account goes into a negative balance after the news profit split adjustment, the next cycle will start with the initial balance. The trader will not be able to request a payout until their account balance exceeds the initial balance by the end of the trading cycle.
Example of Loss Scenario:
Initial Account Balance: $100,000
Cycle End Account Balance: $101,000
Account Balance Without Profitable News Trade: $98,000
Profit from News Trades: $3,000
Adjusted Profit (40% of $3,000): $1,200
The adjusted account balance after applying the news profit split rule will be:
$98,000 + $1,200 = $99,200.
Following the scenario stated in the example, the trader’s account balance becomes negative (for example, a loss of $99,200), and the next cycle will start with the initial balance of $100,000, regardless of the adjusted balance.
In usual cases, if a trader’s account ends with a negative balance at the end of a cycle, the next cycle will begin with the negative balance, and it will not be restored to the initial balance. However, in this case, if the trader’s account goes negative due to the news profit split adjustment, they will have the benefit of starting the next cycle with the initial balance of $100,000.
Managing Trades During News Events:
Traders are allowed to hold running trades during news events without restriction.
Only listed high-impact news events that directly correlate with the trading pair will be considered for the News Profit Split Rule.
If a news event does not directly impact the trading symbol or is classified as low or mid-impact, traders are free to open and close trades without any restrictions.
Example of Trade Correlation
EUR/USD trade during high-impact USD or EUR news → The 40% profit count rule applies.
EUR/USD trade during high-impact CNY news → No restrictions apply, as the news does not directly correlate with the trading pair.
A complete list of applicable trading symbols and high-impact news events can be found below:
Disclaimer: Trading during news events involves rapid market fluctuations, increased volatility, and potential execution risks. The requested execution price for Stop Loss, Take Profit, and other Pending Orders may not be honored during these periods due to slippage. Traders should always exercise caution and ensure a full understanding of the risks involved in news trading.