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Lux Trading Firm News Trading Rule

The Simple Answer

Lux Trading Firm news trading is allowed, but with two specific restrictions that apply at all stages. First, stop losses cannot be added, removed, or modified within 30 seconds before or after any news event. Second, news bracketing, which means placing simultaneous pending buy and sell orders around a scheduled announcement, is a prohibited strategy and a hard breach that results in immediate account termination and forfeiture of all profits.

Outside of those two restrictions, news trading is permitted. Traders can open and close directional positions around economic releases. The 30-second SL rule means stop losses need to be set before the 30-second window begins. News bracketing, also known as straddle trading, is completely off-limits at Lux Trading Firm.

Below is a breakdown of how the Lux Trading Firm news trading rules apply across different account types and stages.

Challenge Type Evaluation Phase Funded Phase
Instant (INSTA) N/A Not Allowed
1 Step (Evaluation) Not Allowed Not Allowed

Note on the table above: The “Not Allowed” entries reflect the Propvator definition that any timing or modification restriction = Not Allowed. News trading at Lux is permitted in a directional sense, but the SL modification ban within 30 seconds and the hard ban on bracketing create restrictions that affect execution. See the breakdown below for the full picture.

Breakdown by Account Type

Instant (INSTA)

The Lux Trading Firm INSTA account provides access to a funded account through a one-time challenge with no ongoing evaluation phases. News trading is permitted in a directional sense: traders can enter and close positions around economic releases. However, the same two restrictions apply. Stop losses cannot be added, modified, or removed within 30 seconds before or after a news event. The stop loss position must be locked in before the 30-second window begins. News bracketing (simultaneous pending buy and sell orders around a release) is a hard breach on the INSTA account that leads to immediate termination.

1 Step (Evaluation)

The Lux Trading Firm standard programme is a 1 Step evaluation that scales through funded stages. News trading is permitted at all stages including the evaluation challenge and all funded scale-up levels. The 30-second SL modification restriction applies throughout. Stop losses must be in place and cannot be changed in the 30-second window around any news event. News bracketing is prohibited across all stages and results in immediate account termination and forfeiture of all profits upon detection. Directional trades before, during, or after news are allowed as long as the SL is not modified within the window.

Warning System for News Rule Violations

Lux Trading Firm treats news bracketing as a hard breach with no warning. A single instance results in immediate account termination and forfeiture of all profits across all account types and stages. There is no soft breach mechanism, no profit deduction option, and no second chance for this specific violation. The 30-second SL modification rule is a separate compliance item; violations there are enforced in accordance with standard Lux Trading Firm rule breach procedures. Traders who only trade directionally and ensure their stop loss is set before each event enter the window cleanly and will not face any news-related penalty.

Final Comments

Lux Trading Firm’s news trading policy permits directional trading around economic releases while closing off two specific approaches. The bracketing prohibition is the most consequential: it is a hard breach on the first offence, meaning traders who use straddle strategies around news events will face immediate termination if caught. Traders who trade directionally and do not use simultaneous pending orders around announcements are not affected by this rule.

The 30-second SL modification window requires a small operational adjustment. Traders need to set their stop loss before any major release and resist any urge to tighten or widen it in the seconds surrounding the announcement. This is manageable for most news traders as the position size and risk are usually determined before entry. The restriction does not prevent entering or exiting trades, only modifying the stop loss within the 30-second window.

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FAQ

Is Lux Trading Firm news trading allowed?

Directional news trading is allowed at Lux Trading Firm. However, two specific restrictions apply: stop losses cannot be modified within 30 seconds before or after a news event, and news bracketing (placing simultaneous pending buy and sell orders around a release) is prohibited and constitutes a hard breach.

What is news bracketing at Lux Trading Firm?

News bracketing, also known as the straddle strategy, involves placing both a pending buy order and a pending sell order around a scheduled news announcement so that one triggers when the price moves. Lux Trading Firm classifies this as a prohibited strategy. A single instance is a hard breach resulting in immediate account termination and profit forfeiture.

What is the stop loss rule around news events at Lux Trading Firm?

At Lux Trading Firm, stop losses cannot be added, removed, or modified within 30 seconds before or after any news event. The stop loss must be set and locked before the 30-second window begins. Entries and exits are not restricted, only SL modifications within the window.

What happens if I bracket news at Lux Trading Firm?

News bracketing is a hard breach at Lux Trading Firm. The account is terminated immediately and all profits are forfeited. There is no warning, no soft breach option, and no appeal mechanism for this violation.

Does the SL rule apply during the evaluation at Lux Trading Firm?

Yes. Both the 30-second SL modification restriction and the news bracketing prohibition apply during the evaluation challenge as well as all funded stages. The policy is consistent across all account types and phases.