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Is News Trading Allowed in the Stellar Instant Accounts?

Updated over 2 weeks ago

TL;DR: Yes, news trading is allowed in the Stellar Instant Account, but trades executed within 5 minutes before or after a listed high-impact news event are subject to the News Profit Split Rule. Under this rule, only 40% of the profit from those trades will count toward your account’s profit. This adjustment applies to both market and pending orders and can affect Performance Rewards eligibility and account metrics. FundedNext also applies a 1% equity buffer to the Trailing Maximum Loss Limit (MLL) to prevent unintended breaches caused by news-time profit deductions.

Yes, news trading is allowed in the Stellar Instant model.

Traders can open or close trades during high-impact news events. However, a special News Profit Rule applies during these events. 

News Profit Rule

Time Window:

This rule applies to all trades executed within a 10-minute window—5 minutes before and 5 minutes after a listed high-impact news event.

Profit Calculation:

Only 40% of the profit from trades placed during this window will be counted toward your account’s profit.

Applies To:

  • Market executions (opening or closing a trade)

  • Pending orders (triggered via Take Profit or Stop Loss)

Important Clarifications:

  • This rule only applies to the FundedNext Stellar Instant Accounts.

  • Partial Order Closures: If part of a position is closed during the news window, the entire trade is affected, and only 40% of the profit will count.

  • Impact on Metrics: This adjustment may reduce the net profit shown in your account.

  • News Profit is calculated after the cycle ends.

Example Calculation:

  • A trader ends their cycle with $10,000 profit, excluding news trades.

  • They also made $3,000 profit from trades executed during the news window.

As per the rule:

  • 40% of the $3,000 = $1,200

  • So, the total profit counted will be $(10,000 + 1,200) = $11,200

1% News Time MLL Equity Adjustment—Explained with Example

Let’s walk through a scenario to understand how we apply a 1% buffer to the Trailing Maximum Loss Limit (MLL) Equity when News Time profit impacts the withdrawal and equity threshold.

Example Breakdown

  • Starting Balance: $10,000

  • Initial Trailing MLL Equity: $9,400

Trade Outcomes:

  • Non-News Trade P/L: -$500

  • News Time Trade P/L: +$1,200

  • Final Balance: $10,700

Updated MLL Equity:

  • After the profit, the Trailing MLL Equity rises to match the starting balance: $10,000

Withdrawal & News Adjustment:

Since the current balance is $10,700 and the MLL Equity is $10,000, the trader is eligible to withdraw a maximum of $700.

However, here's the News Time Reward Share:

  • 60% of News Profit goes to FundedNext

  • 60% of $1,200 = $720

Now, when we deduct this $720 from the wallet (which reflects on the balance):

  • New Balance = $10,700 - $720 = $9,980

This new balance of $9,980 falls below the updated MLL Equity of $10,000, causing a breach.

🛡️ Applying a 1% Safety Buffer

To prevent such an unintended breach due to news-time profit adjustments, we offer a 1% equity extension to the Trailing MLL.

  • Extended MLL Equity: $10,000 → $9,900

So now, even after the wallet deduction, the account remains safe:

  • Final Adjusted Balance: $9,980

  • New MLL Equity: $9,900 → ✅ No Breach

New Cycle Starts From:

  • Starting Balance: $10,000

  • Trailing MLL Equity (with 1% buffer): $9,900

This small but significant buffer ensures fairness and protects traders from technical breaches caused by the timing of reward shares during news events. This 1% buffer, the trader will get a maximum of 3 times in one single account.

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