METALS · XAUUSD · MARKET GUIDE
Gold / US Dollar
How gold is quoted, what a “lot” can mean at different brokers, and how to size a gold trade around a fixed risk budget.
Written by fxRuleBook Editorial TeamReviewed by: awaiting named reviewerLast updated
Gold instrument overview
XAUUSD expresses the price of one troy ounce of gold in US dollars. It is traded as spot, futures, and CFD-style products, and each format defines quantity differently.
Gold is widely followed around interest-rate expectations, the US dollar and shifts in risk sentiment. Those drivers can produce sharp moves around scheduled economic releases.
Understanding gold contract size
There is no single “gold lot”. Many CFD brokers define 1 lot as 100 troy ounces, but others use 10, 1 or even fractional ounces, and futures contracts have exchange-defined sizes.
Because the risk of a price move scales with contract size, the same stop on two platforms can mean very different dollar risk. Always read your platform’s specification sheet.
| Contract per lot | Value of $10 move on 1 lot | Value on 0.10 lot |
|---|---|---|
| 100 oz | $1,000 | $100 |
| 10 oz | $100 | $10 |
| 1 oz | $10 | $1 |
Tick and pip conventions
Gold is commonly quoted to two decimals, making the minimum price step (tick) $0.01. The word “pip” is used inconsistently for gold — some platforms mean $0.01, others $0.10 — so fxRuleBook sizes gold with ticks and price distance instead.
With a 100 oz contract and a $0.01 tick, each tick is worth $1 per lot.
ILLUSTRATIVE POSITION-SIZING EXAMPLE
Sizing a XAUUSD trade from the stop
| Account / risk | $10,000 at 1% = $100.00 |
|---|---|
| Hypothetical entry → stop | 2000 → 1990 (distance 10.00) |
| Ticks / pips | 1000 ticks · no standard pip |
| Loss per lot at stop | $1000.00 |
| Position size (rounded down) | 0.1 lots |
| Risk after rounding | $100.00 |
Hypothetical round prices, 100 oz per lot, $0.01 tick worth $1 — not a quote or recommendation.
Risk-management considerations
- Gaps around scheduled data releases can move price past a stop.
- Spreads often widen at session opens and during low liquidity.
- Contract sizes and minimum lots vary by broker.
- Leverage magnifies both gains and losses; size from the stop, not from margin.
XAUUSD journal template
Record these alongside each XAUUSD trade.
- 01Contract size used (oz per lot)
- 02Session (Asia / London / New York)
- 03Scheduled events that day
- 04Planned vs executed stop distance in $
- 05Spread at entry
- 06Did size follow the 1R rule?
Frequently asked questions
Is 1 lot of gold always 100 ounces?
No. 100 oz is common for CFDs, but brokers and products differ. Check your specification sheet and edit it on the markets page.
What is a pip on gold?
It is not standardised. fxRuleBook uses ticks ($0.01) and price distance to avoid confusion.
Are the prices on this page live?
No. Examples use hypothetical round numbers. Verify current prices with your broker.
Educational content only. No live prices, historical data, signals or forecasts are shown. Contract details are illustrative until verified with your broker.