At most brokers, one standard lot of XAUUSD is 100 troy ounces, so every $1 move in the gold price is worth $100 per lot. A pip is usually $0.10, worth $10 per standard lot. A mini lot (0.10) is 10 ounces and a micro lot (0.01) is 1 ounce — $10 and $1 per $1 move respectively.
Gold lot sizes
| Lot size | Ounces | Per $1 move | Per pip ($0.10) |
|---|---|---|---|
| 1.00 (standard) | 100 oz | $100 | $10 |
| 0.10 (mini) | 10 oz | $10 | $1 |
| 0.01 (micro) | 1 oz | $1 | $0.10 |
Some brokers use different contract sizes, so check your platform's specifications once. The live calculator below lets you test any lot size.
Pips, points and dollars
- Pip: usually $0.10 on gold. A move from 4,000.00 to 4,001.00 is 10 pips.
- Point: the smallest price step, usually $0.01. The same $1 move is 100 points.
- Dollars: many gold traders simply think in dollar moves — "$6 stop, $18 target" — and convert with the 100-ounce rule.
Mixing these up is the most common sizing mistake new gold traders make. If your platform shows a different pip count than you expect, it's counting points.
Calculating profit and loss
P/L = price move × lot size × 100 (reverse the sign for shorts)
Example: buy 0.30 lots at 4,050.00, sell at 4,062.50. The move is $12.50 on 30 ounces: 12.50 × 30 = $375. Use the profit and loss calculator to include commission and swap.
Sizing a position from your risk
Professional traders decide how much they're willing to lose first, then calculate the lot size.
Lot size = dollars at risk ÷ (stop distance × 100)
Example: a $10,000 account risking 1% ($100) with a $5 stop: $100 ÷ ($5 × 100) = 0.20 lots. If the stop is hit, you lose $100 — exactly what you planned. Round down to your broker's lot step. The lot size calculator does this instantly and adds R-multiple targets.
Margin
Margin ≈ lot size × 100 × price ÷ leverage
0.20 lots at $4,000 with 1:100 leverage needs about 0.20 × 100 × 4,000 ÷ 100 = $800. Margin is the deposit your broker sets aside — not your risk. Your risk is set by your stop and lot size.
Common mistakes
- Assuming a gold pip is worth the same as a EUR/USD pip.
- Choosing lot size by "what feels right" instead of from the stop distance.
- Using a tight stop on a big position because the margin allowed it.
- Forgetting that a 0.01 vs 0.10 typo is a 10× difference in risk.
Key takeaways
- 1 lot = 100 oz → $100 per $1 move; 1 pip ($0.10) = $10 per lot.
- P/L = price move × lots × 100.
- Lot size = dollars at risk ÷ (stop distance × 100).
- Margin is a deposit, not your risk — your stop and size are.
Check your understanding
✓ Lesson complete