News and Overnight Rules (Prop Firms)
Event lists, flat windows, hold deadlines, and disconnect handling are not standardized. Always verify the written policy for the exact account type you are trading.
TL;DR
- Some firms restrict trading around major scheduled news releases.
- Some firms forbid overnight or weekend holds, while others allow them only on certain plans.
- Blackout windows typically range from 2 minutes to 30 minutes around high-impact events.
- The definition of "overnight" varies: some firms mean session close, others mean calendar midnight.
- Missing a close deadline by even seconds can result in a rule violation or auto-liquidation.
- Operational edge cases like disconnects, copy trading, and inactivity can matter just as much as entry timing.
Beginner view
Overnight and weekend holds
Hold rules are about gap risk. Some firms require you to flatten before a certain time each day. Weekend holds are usually stricter because the gap from Friday close to Sunday reopen can be large.
News restrictions
News rules usually target major scheduled releases such as CPI, NFP, and FOMC. A firm may forbid new entries, require flat positions, or restrict both for a fixed time window around the event.
Major restricted events
Not every economic release triggers a restriction. Firms focus on events that routinely produce sharp, fast moves in equity index futures. Below are the releases most commonly found on restricted-event lists.
Non-Farm Payrolls (NFP)
Released the first Friday of each month at 8:30 AM ET by the Bureau of Labor Statistics. NFP is widely considered the single highest-impact scheduled release for futures traders. ES and NQ can move 30-60 points within seconds of the print. Virtually every prop firm with a news rule includes NFP.
Consumer Price Index (CPI)
Released monthly, typically around the 10th-13th of the month at 8:30 AM ET. CPI measures consumer inflation and has become one of the most market-moving releases since the post-2022 inflation cycle. A surprise deviation of even 0.1% from consensus can produce violent index moves.
Federal Open Market Committee (FOMC)
FOMC rate decisions are announced eight times per year at 2:00 PM ET, followed by a press conference at 2:30 PM ET. The statement release at 2:00 PM often produces an initial spike, and the press conference can reverse or extend that move. Many firms treat the entire 2:00-3:00 PM ET window as restricted.
Producer Price Index (PPI)
Released monthly at 8:30 AM ET, usually a day or two after CPI. PPI measures wholesale inflation and is treated as a leading indicator for CPI. While generally less volatile than CPI, surprises still move markets and many firms include it on their restricted list.
Initial Jobless Claims
Released every Thursday at 8:30 AM ET. Jobless claims are a weekly labor-market indicator. In isolation they produce moderate moves, but they are often released alongside other data (such as PPI or GDP revisions) which amplifies the reaction. Some firms include them on the restricted list; others do not.
GDP releases
GDP is released quarterly at 8:30 AM ET, with advance, second, and third estimates spread across consecutive months. The advance estimate typically moves markets the most. GDP surprises can shift broad sentiment quickly, particularly when paired with the GDP deflator which signals inflationary pressure.
Fed Chair speeches
Scheduled speeches by the Fed Chair (and sometimes other Fed governors) do not follow a fixed monthly schedule. They are listed on the Federal Reserve's public calendar. Markets parse every word for forward guidance, and a single unexpected phrase can move ES 20+ points. Some firms include all Fed speeches on their restricted list, while others only restrict the Chair specifically.
Unlike retail traders who simply accept the risk, prop firm traders face account-level consequences. A 40-point ES spike during NFP is not just a loss -- it can breach your daily loss limit, trigger a trailing drawdown violation, or result in an outright hard breach. The firm restricts these events because the downside is asymmetric: a lucky news trade helps your P&L, but a bad one can terminate your account instantly.
Typical blackout windows
A blackout window is the period before and after a restricted event during which you must be flat or refrain from trading. The length and strictness vary by firm, but common patterns emerge.
Common window sizes
- 2 minutes before and after: The tightest common window. Used by some firms for lower-impact events. Requires precise timing and a reliable clock.
- 5 minutes before and after: A frequently used standard for firms that restrict NFP, CPI, and similar releases. Example: if CPI is at 8:30 AM ET, you must be flat from 8:25 AM to 8:35 AM.
- 15 minutes before and after: A more conservative window adopted by firms that want to avoid the post-release whipsaw. Example: NFP at 8:30 AM means flat from 8:15 AM to 8:45 AM.
- 30 minutes or longer: Some firms extend the window around FOMC decisions to cover the press conference. A 30-minute buffer before 2:00 PM and after 3:00 PM ET effectively blocks the entire FOMC window.
What "flat" means during a blackout
"Flat" typically means zero open positions and zero working orders. Some firms only require no open positions but allow resting limit orders. Others require that all orders -- including stops, limits, and brackets -- be cancelled. Read the exact policy wording carefully.
Weekend blackout
For firms that prohibit weekend holds, the blackout runs from Friday session close (typically 4:00 PM or 5:00 PM ET depending on the firm's definition) through Sunday session open (typically 6:00 PM ET). This is the longest regular blackout period and exists because of the large gap risk that can accumulate over two days of market closure.
If the blackout starts at 8:25 AM ET and you close your position at 8:25:03 AM, some firms consider that a violation. Use an accurate clock synced to an NTP source, not your computer's local time. The firm's server timestamp, not yours, is what counts.
Overnight hold details
Overnight holds are one of the most frequently misunderstood prop firm rules because the definition of "overnight" is not consistent across the industry.
How firms define "overnight"
- Session close definition: "Overnight" means holding through the CME daily maintenance window (typically 5:00-6:00 PM ET). Under this definition, a position entered at 9:30 AM and held until 7:00 PM is an overnight hold because it spans the session break.
- RTH close definition: Some firms define overnight as holding past Regular Trading Hours close (4:00 PM ET for equities). Any position open after 4:00 PM is considered "overnight" even though the futures session continues.
- Calendar day definition: A few firms treat midnight ET as the overnight boundary. This is less common but can catch traders who are active in the evening session.
If the rulebook says "no overnight holds" without defining the exact cutoff time, contact support and get it in writing. An ambiguous rule enforced against you is still enforced.
Margin requirement changes
Even if a firm allows overnight holds, the margin requirement may increase significantly. During RTH, intraday margins on ES are often as low as $500 per contract at some brokers. Overnight (maintenance) margins jump to $12,000 or more per contract. On a prop firm account with limited capital, this margin jump alone can force a liquidation even if the market does not move.
Gap risk quantified
ES can gap 20-50+ points on a routine overnight session. During periods of elevated macro uncertainty, overnight gaps of 50-100 points are not rare. For a single ES contract, a 50-point gap equals $2,500 in instant, unhedgeable loss. On a $50,000 prop account with a $2,000 daily loss limit, that single gap wipes out your daily limit and potentially breaches your trailing drawdown.
Why firms restrict it
From the firm's perspective, overnight holds introduce uncontrollable risk. The trader is likely asleep and cannot manage the position. Stop losses can gap through, meaning the actual loss exceeds the intended stop level. The firm bears the tail risk if the trader's account goes negative, so restricting overnight holds is a straightforward risk management measure. See also trailing drawdown for how overnight gaps interact with drawdown calculations.
Weekend hold risks
Weekend holds amplify every risk associated with overnight holds. The market is closed for roughly 47 hours (Friday 5:00 PM to Sunday 6:00 PM ET), and events that occur during that window are fully priced in at the Sunday open.
Larger gaps than overnight
Sunday open gaps on ES routinely range from 10 to 30 points under normal conditions. During weekends with significant geopolitical developments, military conflicts, or surprise central bank actions, gaps of 50-100+ points have occurred. These gaps are unhedgeable because you cannot adjust your position while the market is closed.
Geopolitical events during closure
Wars, trade sanctions, political upheavals, natural disasters, and surprise policy announcements do not wait for markets to open. A position held over a weekend is exposed to two full days of potential catalysts with no ability to exit. This is the fundamental reason firms treat weekend holds differently from regular overnight holds.
Maintenance margin vs initial margin
Brokers and clearinghouses may apply full initial margin (not the reduced intraday rate) for positions held through Friday close. On a prop firm account, this can mean your buying power is reduced by 80-90% compared to intraday margins. If your account balance cannot support the higher margin requirement, the position may be auto-liquidated before the weekend even begins.
Tiered account access
Some firms allow weekend holds only on higher-tier or fully funded accounts. Evaluation and lower-tier accounts are typically restricted. The logic is that larger accounts have more drawdown buffer to absorb a gap, while smaller accounts do not. If you are in an evaluation phase, assume weekend holds are prohibited unless the rules explicitly state otherwise.
Close-time rules
Many prop firms require all positions to be closed by a specific time each trading day. Violating this rule -- even by a few seconds -- can result in penalties, account flags, or termination.
Common close times
- 3:59 PM ET: One minute before the equity cash close. Used by firms that want traders flat before the 4:00 PM closing auction volatility.
- 4:00 PM ET: Equity cash market close. A common cutoff for firms that define "end of day" as the cash session close.
- 4:59 PM ET: One minute before the CME daily settlement. Used by firms that allow extended hours trading but require flat before the session rolls.
- 5:00 PM ET: CME session close. The most common cutoff for firms that track CME session boundaries.
Why the exact time matters
The close-time rule is enforced by the firm's server clock, not your local machine. Network latency, order queue delays, and exchange processing time all mean that clicking "flatten" at 4:59:58 PM does not guarantee the fill arrives before 5:00:00 PM. Treat the stated deadline as a hard wall and aim to be flat at least 30-60 seconds early.
What happens if you miss it
- Auto-liquidation: Many firms use automated systems that flatten any open position at the deadline. You have no control over the fill price, and in a fast market the slippage can be significant.
- Rule violation flag: Some firms log the violation without immediately liquidating. Repeated violations accumulate and can result in account review or termination.
- Immediate breach: On stricter firms, a single close-time violation is treated as an automatic hard breach, ending the account.
Auto-liquidation features
Some firms and platforms offer built-in auto-flatten features that close all positions at a configurable time. If your firm does not enforce auto-liquidation, consider setting up your own. Most front-end platforms (NinjaTrader, Rithmic-based platforms, TradingView) support scheduled flatten commands. This is not a substitute for monitoring your positions, but it provides a safety net against distraction or forgetfulness.
Close-time rules may shift on holidays, half-days, and early-close sessions. The CME publishes a trading hours calendar that lists modified schedules. Do not assume the regular close time applies on every trading day. Check your firm's announcements for any holiday-specific adjustments.
Advanced details
Micros and minis
Micros and minis are not always interchangeable under firm rules. Contract limits, approved instruments, and hold rules can differ even when the market exposure is related.
Disconnects and edge cases
If the platform disconnects, save screenshots, timestamps, order IDs, and any system-status evidence immediately. Some firms will review edge cases, but many still apply the rulebook strictly.
Copy trading and account mirroring
Some firms allow limited mirroring across your own accounts. Others treat it as prohibited coordination, especially where it crosses accounts, users, or firms in a way the policy forbids.
Prohibited strategy language
Rulebooks may explicitly restrict DCA, martingale-style sizing, latency arbitrage, or news-event exploitation. The wording varies, so the safe move is to verify the exact language before assuming a strategy is allowed.
Inactivity and session rules
Some firms require a minimum level of account activity or define the trading day according to a specific session clock. That affects when daily loss, end-of-day drawdown, or payout windows reset.
FAQ
Can I hold micros overnight if minis are restricted?
Maybe, but you should never assume the firm treats them the same way. Verify the specific product list and hold rule.
What if the news event is added or revised?
Follow the firm's official event list and announcements. Do not assume a community calendar is enough.
What should I document if I think a disconnect caused a rule issue?
Keep screenshots, timestamps, order IDs, and any status-page evidence. The more exact the record, the better your chance of meaningful review.
What if I forget to close before a news event?
Most firms treat it as a rule violation regardless of intent. Some may auto-liquidate your position at the blackout start time, while others flag the account for review after the fact. Repeated violations typically escalate to account suspension or termination. Set calendar alerts for every restricted event on your trading days, and consider using your platform's auto-flatten feature as a backup. See rules: news restrictions for more detail on enforcement approaches.
Does the blackout apply to limit orders already in the market?
This depends entirely on the firm. Some firms require you to cancel all resting orders -- including stop losses, take profits, and limit entries -- during the blackout window. Others only restrict new order submissions and allow existing orders to remain. A few firms distinguish between protective orders (stops on existing positions) and speculative orders (new entries). The safest approach is to be completely flat with no working orders before the blackout begins, unless the policy explicitly states otherwise.
Can I trade overnight on micro accounts?
Only if the firm's rules for your specific plan allow overnight holds on micro contracts. The reduced tick value of micros (e.g., $1.25/tick on MES vs $12.50/tick on ES) does not automatically exempt them from hold restrictions. Some firms permit overnight holds on funded accounts but not during evaluations. Others apply the same restriction regardless of contract size or account tier. Check the glossary entry on overnight holds and your firm's specific plan documentation.
What calendar should I follow for restricted events?
Start with your firm's official restricted-event list if they publish one. If the firm references a general economic calendar without providing their own list, use well-known sources like the CME Group economic calendar, Forex Factory, or Investing.com. Filter for "high impact" events on futures-relevant economies (primarily U.S. for equity index futures). When in doubt, treat any event with a "high impact" rating as potentially restricted and stay flat. It is better to miss a trading opportunity than to violate a rule you did not know applied.
What happens during unscheduled events like emergency Fed announcements?
Unscheduled events are generally not covered by pre-defined blackout windows because, by definition, they cannot be anticipated. However, the resulting volatility can still trigger your daily loss limit or cause margin calls. Some firms reserve the right to restrict trading or auto-liquidate positions during extreme market conditions regardless of the event type. There is no universal protection against surprise events -- this is a core risk of trading that applies to both prop firm and retail accounts. The best defense is position sizing that accounts for tail risk and maintaining awareness of developing situations.