The right lot size for gold is usually much smaller than on forex, because a normal gold stop is worth far more money per lot. Here is one trade worked through step by step.
You can try the All In One Trade Management Panel free on a demo account.
Gold Contract Size
On most MT5 brokers, 1 lot of XAUUSD = 100 troy ounces. So:
| Lot | Ounces | Money per $1 move in gold |
|---|---|---|
| 1.00 | 100 | $100 |
| 0.10 | 10 | $10 |
| 0.01 | 1 | $1 |
Check yours: right-click XAUUSD in Market Watch > Specification > Contract size. A few brokers use other sizes, which changes everything below.
XAUUSD Pip Value: Why It Confuses Everyone
Brokers don't agree on what a "pip" is on gold. Some call $0.10 a pip, others $0.01, and some count "points". The same stop can be described as 100 pips, 1,000 points or $10.
The safe way: think in dollars of price movement. A move from 4,500.00 to 4,490.00 is $10, whatever your broker calls it.
The Trade
- Account: $10,000. Risk: 1% = $100.
- Buy XAUUSD at 4,500.00. Stop loss at 4,490.00 - a $10 move.
- Loss per 1.00 lot if stopped: $10 × 100 oz = $1,000.
- Gold position size = $100 ÷ $1,000 = 0.10 lots.
The same $100 risk at other stop distances:
| Stop distance | Lot size |
|---|---|
| $5 | 0.20 |
| $10 | 0.10 |
| $25 | 0.04 |
A forex trader used to 0.50 lots on EURUSD who opens 0.50 lots on gold with a $10 stop is risking $500 - five times the plan.
Doing It on the Chart
In the ATC Position Tool and Trade Manager MT5, open a gold chart, place the position and drag the stop to 4,490.00. With Percent risk at 1%, the tool shows 0.10 lots and $100 at risk. It reads gold's contract size and tick value from your broker, so the same steps work whatever your broker's gold specification is.
FAQ
How much is 1 pip on gold?
It depends on your broker's definition. With a 100 oz contract, a $0.10 move is $10 per lot and a $0.01 move is $1 per lot.
What is 0.01 lot of gold worth?
With a 100 oz contract, 0.01 lot = 1 ounce: $1 profit or loss for every $1 gold moves.
How big should a gold stop loss be?
It should sit beyond the structure that invalidates your trade, not at a fixed number. Gold often moves tens of dollars in a day, so very tight stops get hit by noise. Size the lot from the stop, not the other way round.
Read next
- The full method: lot size calculator [link]
- Tomorrow: Lot Size for US30 and NAS100
- You can try the All In One Trade Management Panel free on a demo account.
