Definition
What is High-impact news?
High-impact news are scheduled economic releases, such as interest rate decisions, inflation and employment data, that economic calendars rate as most likely to move prices sharply.
Economic calendars rate each event by expected impact. The top tier usually includes central bank rate decisions and press conferences, CPI inflation, non-farm payrolls and GDP.
Around these releases liquidity thins out: spreads widen, prices can jump past stop losses and fills can be worse than expected. That is why many firms and many traders avoid them.
The impact is tied to a currency. A US release mainly moves USD pairs, gold and US indices; a UK release mainly moves GBP pairs.
Example
Example: a trader risks $100 with a 20-pip EURUSD stop ($5 per pip). On a jobs report the price gaps through the stop and the fill comes 15 pips further away, so the loss is 35 pips, about $175 instead of $100.
At a prop firm
Axora Funded uses the high-impact events of its economic calendar for the news rule on paid accounts: no new trades or stop changes from 30 minutes before to 30 minutes after the release on affected instruments.
Frequently asked questions
Where can I see upcoming high-impact news?
In the economic calendar on the Axora Funded platform, which shows the time in UTC and the affected currency.
Is medium-impact news restricted?
The Axora Funded news rule applies to high-impact events only.