Sessions, news and the calendar
What you learn in 3 minutesA pair like EUR/USD does not move at the same speed all day. It is busiest when London and New York are both open, and quietest when both are closed. That matters in money terms: a stop placed during a quiet hour can sit untouched for a long time, while the same stop during a busy hour can be reached in minutes.
One stop, two sessions, 30 pips
| Step | Amount | Note |
|---|---|---|
| Instrument | EUR/USD | the pair used in this example |
| Price used | 1.0850 | a round figure chosen for easy arithmetic |
| Position size | 0.10 lots | one tenth of a standard lot, so 10,000 units of the base currency |
| Pip value on 0.10 lots | KSh 129 | one pip on one standard lot is 10 units of the quote currency; 10 units x 0.10 lots = 1 unit of the quote currency, converted to KES at about 129 |
| Distance to the stop | 30 pips | the stop sits 30 pips away from the entry price |
| Risk if the stop is hit | KSh 3,870 | 30 pips x KSh 129 per pip |
| London session in Kenyan time | about 11:00 to 20:00 | Kenya keeps the same clock all year; London shifts by one hour in late March and late October |
| New York session in Kenyan time | about 16:00 to 01:00 | again, this shifts with United States daylight saving |
| Overlap | about 16:00 to 20:00 | both centres open at once; this is usually the busiest window |
Your broker may round the pip value, quote a slightly different conversion rate for the shilling, or add a commission on top. Spreads also widen around scheduled releases, so the price you get filled at can be worse than the price on the screen.
The mistake people make here
The common mistake is to treat every hour as equally tradable and to leave a tight stop in place through a scheduled release. During a release, the spread can widen from a fraction of a pip to several pips, and the price can jump past your stop rather than through it. The result is a fill further away than the KSh 3,870 you planned. Instead, check the calendar before you enter, and either reduce size, widen the stop, or stay out until the first minutes after the release have passed.Check yourself
You hold 0.20 lots of EUR/USD and your stop is 25 pips away. What is the risk in KSh, using KSh 129 per pip on 0.10 lots?
Pip value on 0.20 lots is 2 units of the quote currency, so about KSh 258 per pip. 25 pips x KSh 258 = KSh 6,450.
A release is due at 15:30 Kenyan time. Is the London session open, and is New York open?
London is open, since it runs to about 20:00 Kenyan time. New York opens at about 16:00, so at 15:30 it is not yet open. You are in a single-session window, not the overlap.
Your spread widens from 1 pip to 4 pips on 0.10 lots. How much extra does the wider spread cost on entry?
The extra is 3 pips. 3 x KSh 129 = KSh 387.
In Kenya
- Currency
- The shilling, written KSh (KES)
- Regulator
- The Capital Markets Authority (CMA) licenses and supervises firms offering these products in Kenya
- Funding
- M-Pesa and bank transfer are the common ways to move money to and from a trading account
- Time zone
- Kenya keeps one clock all year, so session times shift only when London or New York change their clocks
- Costs
- Spreads, commissions and conversion charges vary between brokers; read the fee schedule before funding