TL;DR: Yes, news trading is allowed in the Stellar LiteChallenge and FundedNext Account.. However, trades opened or closed within 5 minutes before and after high-impact news releases will trigger the News Profit Split Rule: only 40% of profits will count toward your account, while 100% of losses still apply. Market volatility, slippage, and wider spreads are expected during news times, and FundedNext is not responsible for these conditions.
FundedNext permits news trading in all Challenges, including the Stellar Lite Challenge. However, once you pass the Challenge and transition to the FundedNext Account, strict rules apply.
Allowed in Both Challenge & FundedNext Account
News trading is permitted in the Stellar Lite Challenge
It is also allowed in the FundedNext Account, but subject to the News Profit Split Rule.
News Profit Split Rule
If you open or close a trade in your FundedNext during this specific time window:
5 minutes before and 5 minutes after a listed high-impact news event
Then only 40% of the profit from that trade will be counted toward your balance
But 100% of the loss will be fully applied
This rule applies to Market Execution, Pending Orders, Take Profit, and Stop Loss triggers
This rule does not apply in the Challenge.
Example:
If you profit $1,000 from a news trade, only $400 will be added to your account.
If you lose $1,000, the full $1,000 loss will reflect in your account.
What FundedNext Cannot Control:
High volatility during news hours
Widened spreads and frequent slippage
Execution delays due to unstable liquidity
These are normal behaviors in real markets during news events.