What is News Straddle?
A news straddle involves placing pending buy and sell orders on both sides of the current price just before a high-impact news release, hoping to catch the breakout in either direction. The strategy is banned at most prop firms because it exploits the firm's exposure to volatility-driven slippage. Even at firms that allow news trading, news straddle patterns are typically flagged by AI risk monitoring and may result in profit voiding.
Key takeaways
Placing opposing orders before a news release to catch the breakout.
The strategy is banned at most prop firms because it exploits the firm's exposure to volatility-driven slippage.
Even at firms that allow news trading, news straddle patterns are typically flagged by AI risk monitoring and may result in profit voiding.
News Straddle vs. News Trading
Two terms that frequently get conflated. Here's how they actually differ.
News StraddleTrading Strategies · PRO
News TradingTrading Styles · PRO
Placing opposing orders before a news release to catch the breakout.
Trading during high-impact economic news releases.
Frequently asked questions
What is News Straddle?
A news straddle involves placing pending buy and sell orders on both sides of the current price just before a high-impact news release, hoping to catch the breakout in either direction. The strategy is banned at most prop firms because it exploits the firm's exposure to volatility-driven slippage. Even at firms that allow news trading, news straddle patterns are typically flagged by AI risk monitoring and may result in profit voiding.
Why does News Straddle matter for prop firm traders?
News Straddle is one of several trading approaches that prop firms either tolerate, restrict, or ban outright. Knowing where your firm stands on it is the difference between a payout and a profit-voided account.
How is News Straddle different from News Trading?
News Straddle and News Trading are commonly confused. News Straddle: Placing opposing orders before a news release to catch the breakout. News Trading, by contrast: Trading during high-impact economic news releases.
What should traders watch out for with News Straddle?
Even when a strategy is technically allowed, AI risk monitoring in 2026 may flag patterns that resemble banned behaviour. When in doubt, contact support before scaling up.