Updated 2026-03-08
Topstep News Trading Policy Rule Explained
Topstep
Quick Answer
Topstep prohibits all news trading during high-impact economic news events across all account phases.
This policy applies to all high-impact economic releases and prevents traders from opening or holding positions during these events. Violating this rule results in immediate account termination. The restriction covers both Challenge and Funded phases across all account sizes.
Key Rule Details
Policy
N/A
Detail
See official rules
Applies To
All high-impact news (NFP, FOMC, CPI)
Enforcement
Automated — breach triggers account review
Phases
Challenge and Funded
Calculation Example
Common Mistakes
Trading NFP releases
Many traders forget that major releases like Non-Farm Payrolls are strictly prohibited at Topstep. Even a small $500 profit on a 1-lot ES trade during NFP announcement will result in immediate account termination. This differs from other prop firms that may only restrict position increases during news.
Holding overnight before news
Traders often hold positions overnight before major economic announcements, thinking they're safe since they entered before the news window. At Topstep, having any open position during the actual news release violates the policy. A trader holding 2 ES contracts during FOMC announcement faces account termination regardless of when they entered.
Trading minor economic data
Some traders assume only major events like FOMC are restricted, but Topstep's policy covers all high-impact economic news events. Trading during events like CPI, GDP, or even jobless claims can trigger a violation. A $200 scalp during weekly jobless claims announcement could end a funded account.
News trading in different markets
Traders think they can avoid the rule by switching to different markets during news events. However, Topstep's news trading prohibition applies across all instruments they offer. Trading crude oil futures during inventory reports or bonds during economic releases will still result in account termination.
Protection Strategies
Close all positions before news events
Exit all trades at least 15-30 minutes before any scheduled high-impact economic release. This ensures you're completely flat during the news window and eliminates any risk of violation. Create a daily routine of checking the economic calendar each morning.
Use economic calendar alerts religiously
Set up multiple alerts 1 hour and 15 minutes before each high-impact news event. Use reliable economic calendars like ForexFactory or Investing.com to track all relevant releases. This prevents accidental trading during restricted periods when you're focused on charts.
Implement automatic position closure systems
Program your trading platform to automatically close all positions 30 minutes before scheduled high-impact events. This removes human error from the equation and ensures compliance even when you're distracted. Many platforms allow time-based exit orders for this purpose.
Avoid trading 2 hours around news
Create a personal buffer by avoiding all trading from 2 hours before to 1 hour after major economic releases. This wider window accounts for early market reactions and ensures you never accidentally trade during the restricted period. Focus these hours on analysis instead of execution.
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Frequently Asked Questions
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on Topstep's official website before purchasing a challenge. Updated 2026-03-08.