News trading is allowed if the trade reflects a genuine market view and is not designed only to exploit volatility, price spikes, execution delay, or market inefficiencies.
News straddling is prohibited. News straddling means placing opposing or hedged exposure on the same or correlated instruments around relevant news events to capture volatility rather than trade a genuine directional view.
Example: placing both a buy stop and a sell stop on EURUSD shortly before a Red impact NFP release to capture whichever side spikes is news straddling and is prohibited.
Related Terms: Sections 7.1, 7.8
