Sessions, news and the calendar
What you learn in 3 minutesA reader once watched USD/INR sit almost still for three hours in the afternoon, then move 40 pips in twenty minutes after a scheduled release. The lesson here is about timing: which hours a pair actually moves in, and which calendar events can widen the spread enough to matter to a stop.
A 20-pip stop on one standard lot of USD/INR
| Step | Amount | Note |
|---|---|---|
| Instrument | USD/INR | the pair used throughout this course |
| Reference price | 83.2500 | a round number chosen for the example only |
| One pip, one standard lot | ₹10 | 100,000 x 0.0001, the contract size times the pip size |
| Stop distance | 20 pips | the distance from entry to stop, set by the reader |
| Stop value | ₹200 | 20 pips x ₹10 per pip |
| Spread widened by news | 3 pips | a wider quote around a release, not a fixed figure |
| Extra cost at that spread | ₹30 | 3 pips x ₹10 per pip, on top of the normal spread |
The broker may round the pip value, charge a commission, or quote a different spread around releases. Spreads vary between brokers and widen when liquidity is thin.
The mistake people make here
The common mistake is to treat every hour as equally tradeable and every release as background noise. A stop set at 20 pips can be reached by a spread widening alone, without the price moving in the direction the reader expected. The fix is to check the calendar before entering, and to size the stop so that a wider spread still leaves room. If a release is due in the next few minutes, waiting is a decision, not a delay.Check yourself
One standard lot of USD/INR has a pip value of ₹10. If the spread widens from 1 pip to 4 pips, what is the extra cost on that lot?
The widening is 3 pips. 3 x ₹10 = ₹30 extra.
A stop is 15 pips away on one standard lot. What is the stop value in rupees?
15 pips x ₹10 per pip = ₹150.
If the stop is 15 pips and the spread widens by 3 pips at the same moment, what total distance must the price cover before the stop is hit?
The stop distance plus the widening: 15 + 3 = 18 pips, which is ₹180 on one standard lot.
In India
- Currency
- Indian rupee, written ₹ (INR)
- Instrument in examples
- USD/INR, around 83.2500
- Pip value
- One pip on one standard lot of USD/INR is ₹10 (100,000 x 0.0001)
- Regulator
- SEBI
- Payment methods
- UPI and bank transfer