I've been getting into news trading and I've decided I want to familiarize myself more with the different methods and issues to trading the news. I've seen a lot of things but never an official explanation.

The two distinct methods of trading the news I'm acquainted with are straddling and fading. Straddling of course is putting two limit orders on every side of the price in order to ch the spike resulting from the news release. Fading (based on Investopedia) involves entering a position on top or bottom of a spike in hopes that the spike will undo.

I don't use either of those methods, but I've considered using straddles. Using straddles makes me quite nervous because my broker typically widens spreads to 20 points during news releasese. Instead, I wait until the initial spike occurs and spreads fall, then I open a position in the path of the spike. I've had a lot of success doing this in the couple of months I've been trading. I've just lost 3-4 news transactions doing this.

Apart from them, what other methods are there for news trading?

I'm also curious about the issues brokers have with news trading. Which methods to news trading will cause a broker to call/email you and threaten to close your account? I assumed the sole people brokers had issues with were traders who pay to get a news feed and put orders prior to the news spike. Would brokers have issues with traders who fade the news or straddle the news?