Sessions, news and the calendar
By the end you will be able to read a session clock and a calendar together, and put a peso figure on one pip before you place an order.
The three trading sessions and the hours they overlap
The chart shows the busiest hours first. Look at the vertical bars under the price. Tall bars mean many trades. Short bars mean few. The tall bars repeat at the same clock times each day. Those times are the sessions.
Sydney opens first, then Tokyo, then London, then New York. Each session has its own high and low. When two sessions overlap, the bars grow taller. The London and New York overlap is the tallest for EUR/USD. It runs from 8:00 pm to 12:00 am Philippine time.
The spread is the gap between the buy price and the sell price. In quiet hours, the spread on EUR/USD is often around 1 pip. In the overlap, it can be 1 to 2 pips. In the last hour before New York closes, it can widen to 3 pips. The chart shows the bars, but the spread is a separate number on your platform. Check both.
How scheduled releases change the spread and your stop
A calendar lists releases by date and time. Each release has a country and a name. The chart shows a spike at that minute. The spike is not a trend. It is a burst of orders. The spread widens because there are not enough sellers at the buy price or buyers at the sell price.
For EUR/USD, the releases that matter most are from the euro area and the United States. The European Central Bank rate decision and the US non-farm payrolls are two examples. The exact list varies by month. Your broker may publish a calendar inside the platform. The SEC Philippines does not set these release times. They come from the statistics agencies.
A stop is an order to close at a chosen price. If the spread widens from 1 pip to 6 pips, the sell price drops 5 pips without the mid-price moving. A stop 20 pips away can be hit by that drop alone. The chart may show no candle at that level. The stop is still filled. That is why the calendar belongs beside the chart.
Putting a peso cost on the spread before you place the stop
One pip on one standard lot of EUR/USD is 10 USD. At ₱58 to the dollar, that is ₱580 per pip. For 0.10 lots, it is ₱58 per pip. For 0.01 lots, it is ₱5.80 per pip. These figures assume the broker converts at ₱58. The broker may round the conversion and add a commission. The real cost can differ.
The spread is paid on entry and on exit. If the spread is 1 pip, a round trip on one standard lot costs 2 pips, or ₱1,160. If the spread widens to 5 pips during a release, the round trip costs 10 pips, or ₱5,800. The extra is 8 pips, or ₱4,640. That extra comes out of your account even if the mid-price returns to where you entered.
Before you set a stop, write down three numbers: the normal spread, the spread during the release, and your pip value in pesos. If the release spread is 5 pips and your stop is 15 pips, the spread alone is one third of your stop distance. You can widen the stop, reduce the lot size, or wait until the spread returns to normal. The choice is yours, but the numbers are not.
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.
Doing it once, step by step
You will read a session clock and a calendar together, then put a peso figure on one pip. Do this once for EUR/USD before you place any order.
- 01
Open the chart and find the session clock
On your platform, open EUR/USD on a 15-minute chart. Look for a session indicator or a clock that shows Tokyo, London, and New York times. If your platform does not have one, use a free online session clock. Note the hours when the bars are tallest. For Philippine time, the London and New York overlap is 8:00 pm to 12:00 am.
- 02
Check the calendar for the next 24 hours
Open the economic calendar on your broker's platform or a public calendar site. Filter for euro area and United States releases. Write down the time and name of each high-impact release. High-impact releases are marked with a colour or a symbol. If you are unsure, treat every release as high impact until you learn which ones move EUR/USD.
- 03
Measure the normal spread and the release spread
During a quiet hour, note the spread on EUR/USD. It might be 1 pip. Then wait for a scheduled release and note the spread again. It might be 5 pips. Write both numbers down. The difference is the extra cost you pay if you trade through the release. That difference is not a prediction. It is a recorded observation.
- 04
Calculate your pip value in pesos
Take the pip value in USD for your lot size. For one standard lot, it is 10 USD. Multiply by the exchange rate your broker uses. If the rate is ₱58, one pip is ₱580. For 0.10 lots, divide by ten: ₱58 per pip. For 0.01 lots, divide by one hundred: ₱5.80 per pip. Write this number beside your chart.
- 05
Add the spread to your stop distance
Choose a stop distance in pips, such as 15 pips. Add the release spread in pips, such as 5 pips. The total distance the price must move against you to hit the stop is now 20 pips. Multiply by your pip value in pesos. For 0.10 lots at ₱58 per pip, 20 pips is ₱1,160. That is the cost if the stop is hit during the release.
- 06
Decide whether to trade, widen, or wait
Compare the total cost in pesos to the amount you are willing to risk on one trade. If the cost is too high, do not place the order. If you still want to trade, reduce the lot size or widen the stop. Widening the stop increases the risk in pesos, so recalculate. Waiting until the spread returns to 1 pip removes the extra cost.
The mistake most 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.
Questions that come up next
What time do the bars on the chart get tall for EUR/USD?
The tall bars appear when two sessions overlap. For EUR/USD, the tallest bars run from 8:00 pm to 12:00 am Philippine time. That is the London and New York overlap. Outside those hours, the bars are shorter and the spread is often wider. Check the clock before you look for an entry.
Why does the spread widen during a release even when the chart shows a small candle?
The spread is the gap between the buy price and the sell price. During a release, many orders arrive at once. There may not be enough sellers at the buy price or buyers at the sell price. So the gap widens. The mid-price, which is the average of the two, may barely move. The chart often draws the mid-price, so the candle looks small while your cost grows.
How much does a 1-pip spread cost me on 0.10 lots of EUR/USD?
One pip on a standard lot is 10 USD. At ₱58 to the dollar, that is ₱580 per pip. For 0.10 lots, you multiply by 0.10. ₱580 x 0.10 = ₱58 per pip. The spread is paid on entry and on exit, so a 1-pip spread costs you 2 pips in total, or ₱116.
If the spread widens from 1 pip to 6 pips, how much extra do I pay on one standard lot?
The extra is 5 pips. At ₱580 per pip on a standard lot, 5 x ₱580 = ₱2,900. That is the extra cost on a round trip. The mid-price may not have moved at all. This is why a stop can be hit by cost alone.
Where do I find the release times for EUR/USD?
Release times come from statistics agencies, not from the SEC Philippines. Your broker may publish a calendar inside the trading platform. The exact list varies by month. Always check the calendar before you set a stop. If a release is due, either widen the stop or stand aside until the spread returns to normal.
Can I use GCash or bank transfer to fund my account?
Many brokers in the Philippines accept GCash and bank transfer. The payment methods vary between brokers. Check the broker's own page for the current list. The SEC Philippines regulates some brokers, but not all. Always confirm the broker's registration before you send money.
The words used on this page
- session
- A period when one major financial centre is open for trading. Sydney, Tokyo, London and New York each have a session. When two sessions overlap, the bars on the chart get taller.
- spread
- The gap between the buy price and the sell price. It is a cost you pay on entry and on exit. In quiet hours it is often around 1 pip on EUR/USD. It can widen during scheduled releases.
- pip
- The smallest common price step for a currency pair. For EUR/USD, one pip is 0.0001. On a standard lot, one pip is worth 10 USD. At ₱58 to the dollar, that is ₱580.
- stop
- An order to close a trade at a chosen price. It limits your loss if the market moves against you. But if the spread widens, the stop can be hit even when the mid-price does not reach it.
- mid-price
- The average of the buy price and the sell price. Charts often draw this price. It can look calm while the spread widens around it. Always check the spread separately.
What to take away
- The chart shows when the pair moves. The calendar shows when the spread widens. Read both before you set a stop.
- One pip on a standard lot of EUR/USD is ₱580 at ₱58 to the dollar. Scale that by your lot size to get your cost per pip.
- A spread that widens from 1 pip to 6 pips adds 5 pips of cost. On a standard lot that is ₱2,900, even if the mid-price does not move.
- The SEC Philippines does not set release times. Check your broker's calendar, and remember that payment methods vary between brokers.