Sessions, news and the calendar
What you learn in 3 minutesThis lesson shows which hours a pair such as EUR/USD actually moves, and which scheduled releases can widen the spread enough to matter to a stop. We work in pesos, because the spread and the pip value are what decide whether a stop is hit by price or by cost.
One pip on EUR/USD at 1.0850, in pesos
| Step | Amount | Note |
|---|---|---|
| Contract size, one standard lot | 100,000 EUR | The standard lot size for EUR/USD. |
| One pip in the quote currency | 10 USD | 100,000 x 0.0001 = 10 units of the quote currency, USD. |
| Peso conversion | ₱580 | 10 USD at an assumed rate of ₱58 to the dollar; the rate varies daily. |
| A 20-pip stop on one standard lot | ₱11,600 | 20 x ₱580 = ₱11,600. |
| The same 20-pip stop on 0.10 lots | ₱1,160 | One tenth of the standard lot, so one tenth of ₱11,600. |
The broker may round the conversion, add a commission, and quote a wider spread around scheduled releases, so the real cost can differ from these figures.
The mistake people make here
The common mistake is to look only at the price chart and ignore the clock. A stop placed at 20 pips can be reached by a spread that widens from 1 pip to 6 pips during a release, even when the mid-price barely moves. Check the calendar before you set the stop, and either widen the distance or stand aside until the spread returns to normal. The spread is a cost you pay on entry and exit, so it belongs in the same calculation as the pip value.Check yourself
One pip on one standard lot of EUR/USD is 10 USD. At ₱58 to the dollar, what is one pip in pesos?
10 x ₱58 = ₱580.
A 15-pip stop on 0.10 lots of EUR/USD: what is the risk in pesos at ₱580 per pip on a standard lot?
₱580 x 0.10 = ₱58 per pip; 15 x ₱58 = ₱870.
If the spread widens from 1 pip to 5 pips, how much extra does one standard lot cost on entry and exit?
The extra is 4 pips: 4 x ₱580 = ₱2,320.