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Sessions, news and the calendar

Reading the market: charts, tools and instruments3 min read
What you learn in 3 minutesThis lesson shows which hours of the day EUR/USD actually moves, and which scheduled news releases can widen spreads enough to hit a stop. You will see the cost in naira, because a wider spread is money paid on every trade. For a reader in Nigeria, the two sessions that matter most are London and New York, and both fall inside your working day.

One pip on EUR/USD costs ₦1,085

StepAmountNote
Standard lot size100,000 unitsThe contract size for one standard lot of EUR/USD.
One pip in quote currency10 USD100,000 x 0.0001 = 10 USD.
Exchange rate used₦1,550 per 1 USDA rate that varies between brokers and payment methods.
One pip in naira₦15,50010 USD x ₦1,550 = ₦15,500.
Spread cost on a 1.5 pip spread₦23,2501.5 x ₦15,500 = ₦23,250, paid on entry.

Your broker may round the pip value, add a commission, or quote a different exchange rate for deposits and withdrawals. The naira figure is an estimate, not a fixed cost.

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The mistake people make here

The common mistake is to trade the first minute after a major release such as NFP or a rate decision, because the chart looks active. Spreads can widen from 1 pip to 10 pips or more in seconds, so a stop that looked safe is hit by the spread alone. Instead, check the economic calendar before you place an order, and either wait for the spread to return to its normal level or avoid trading during that window. If you do trade the news, size the position so that a wider spread does not cost more than your planned risk.

Check yourself

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If one pip on a standard lot is 10 USD and the rate is ₦1,550 per USD, what is the naira cost of a 2 pip spread?

10 USD x ₦1,550 = ₦15,500 per pip. 2 pips x ₦15,500 = ₦31,000.

London opens at 08:00 UK time. If Nigeria is 1 hour ahead, what time is that in Lagos?

09:00 Lagos time, because Nigeria is 1 hour ahead of UK time when the UK is on standard time. The exact difference changes when the UK moves to summer time.

In Nigeria

Regulator
SEC Nigeria
Money
Naira, written ₦ (NGN)
Payment methods
Bank transfer, USSD and cards
Session overlap
London and New York overlap from about 13:30 to 16:00 Lagos time, when spreads are often tighter and moves larger.
Calendar check
Scheduled releases such as NFP and central bank rate decisions can widen spreads. The exact times and impact vary, so check a calendar before trading.
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Next in Reading the market: charts, tools and instrumentsA plan, a journal and a backtest
Trading forex and CFDs carries a high risk of losing money. Most retail accounts lose. Nothing here is a recommendation to trade or a forecast of any result.Amarayour course guide