What to know before sizing XAUUSD
Gold is quoted in dollars per troy ounce, and most CFD and spot brokers define one lot as 100 ounces. A $1 move in the price is therefore $100 per lot and $1 per 0.01 lot. Brokers disagree on what a pip or point means for gold (a 0.10 or a 0.01 move), so this page measures stops in dollars of price, which you can read straight off the chart.
Gold reacts to US real yields, the dollar, inflation data, central-bank decisions and geopolitical stress, and its daily range in dollars is large next to a forex pip stop. A $15 stop on one lot is $1,500, which is 15% of a $10,000 account, so retail positions are usually in hundredths of a lot. That is the single most common sizing mistake on this instrument.
Watch for
- Check the contract: 100 oz per lot is common, but some brokers use 1 oz or 10 oz per lot. The contract field in the calculator is editable for that reason.
- Spreads on gold are wider than on the euro majors and widen at news times and rollover. Use the stop distance after allowing for the spread.
- A pip or point is not standardised. Convert the stop to dollars of price (entry minus stop), then multiply by $100 per lot.
XAUUSD contract specifications (example)
| Instrument | Gold / US dollar (XAUUSD) |
|---|---|
| Contract size (example) | 100 troy ounces per lot (0.01 lot = 1 ounce) |
| Value of 1 dollar per 1 lot | $100 at the example price |
| Minimum size and step (example) | 0.01 lot at many brokers; some start at 0.1 |
| Example price used | 2,400.00 |
| Currency handling | Quote currency is USD, so no conversion is needed for a USD account. |
Example specification. Brokers differ: confirm the contract size, minimum size and step in your platform's contract specification before you size a real trade.
Worked examples for XAUUSD
Every number below is computed with the same formulas as the calculator, at the example prices shown, for a USD account.
Value of one dollar at different sizes
At the example price of 2,400.00, the money value of one dollar on XAUUSD for a USD account:
Sizing a trade on XAUUSD from your risk
Account $10,000, risk 1% ($100), stop 15 dollars. Each dollar is worth $100 per lot, so the exact size is 100 ÷ (15 × $100) = 0.0667 lots. Rounded down to a tradable size that is 0.06, and the real risk is $90.00.
Why one lot of gold is usually too big
One lot is 100 ounces, so each $1 of price is $100. A 15 dollar stop on a single lot would risk $1,500, which is 15% of a $10,000 account. To keep the risk at 1% ($100), the size is 0.067 lot, rounded down to 0.06 lot (about 6 ounces).
The math behind the numbers
size = (balance × risk %) ÷ (stop in dollars × value of 1 dollar per lot)
round down to a multiple of 0.01
position value = size × contract × price (converted to USD)Same formulas as the pip value and position size calculators (XAUUSD numbers above are examples at the price shown). Rounding down keeps real risk at or below your limit.
To run your own numbers for another currency or contract, use the lot size calculator, the pip value calculator or the position size calculator. When the pair is most active, check the forex market hours tool. How much to risk per trade is a separate question, covered in how much to risk per trade, and the step-by-step is in how to calculate position size.
XAUUSD questions
How much is a pip in gold?
There is no agreed pip. Some platforms treat a 0.10 move as a pip ($10 per lot) and others treat 0.01 as a point ($1 per lot). Measure your stop in dollars of price instead: with a 100 ounce lot each $1 is $100 per lot.
What is the smallest gold position?
Many brokers allow 0.01 lot, which is 1 ounce, so $1 per $1 move. Some start at 0.1 lot, and exchange-traded micro gold futures use 10 ounces. Check the minimum in your contract specification.
Why did my gold loss exceed the planned risk?
Gold can gap or slip through a stop during data releases and in thin hours. On most brokers a stop is a request to exit at the next available price, not a guaranteed fill, and guaranteed stops, where offered, usually cost extra.
How much is one dollar worth on XAUUSD?
For a USD account, one dollar on 1 lot is about $100 at the example price of 2,400.00, and $10.00 on 0.1 lot. Brokers differ, so confirm the contract size before you rely on it.
What size should I trade on XAUUSD with $10,000?
It depends on your risk and stop, not on the account alone. With 1% risk and a 15 dollar stop the example size is 0.06 lots, which risks $90.00. Change the stop and the size changes with it. This is arithmetic, not advice.
Know what each dollar is worth, then place the stop.
Once you know what a dollar on XAUUSD is worth, the stop distance sets your risk. These indicators help you find where the stop belongs.
Last updated November 2026. For education only. Not financial advice. Position sizing limits the loss you plan, but stops can slip and losses can exceed the planned amount. Results depend on your inputs and cannot predict future performance.