IC Markets
Written byAbir KhanWriter
Market analysis byTanbir Habib RiyadCo-Founder & Trader
Fact-checked & QC byJowel RanaFact-Checker & QC
Edited byRanjan NiskrityChief EditorThis tool is for education and planning only and is not financial advice. Forex and CFD trading carries a high risk of losing money rapidly due to leverage. Check your broker's own contract specifications, fees and margin rules before you trade.
Gold and silver contract specifications
Typical specifications at MetaTrader brokers. Check your broker's contract specifications, because some use different contract sizes.
| Gold (XAU/USD) | Silver (XAG/USD) | |
|---|---|---|
| Standard lot | 100 troy ounces | 5,000 troy ounces |
| Price quoted to | 2 decimals ($0.01) | 3 decimals ($0.001) |
| Value of $0.01 move per lot | $1 | $50 |
| Value of $1 move per lot | $100 | $5,000 |
| Mini lot (0.1) | $10 per $1 move | $500 per $1 move |
| Micro lot (0.01) | $1 per $1 move | $50 per $1 move |
Gold pips and points, without the confusion
No single definition of a gold pip exists, which causes most sizing mistakes. The safest habit is to measure stops in dollars of price.
$0.01 as a point
Many MetaTrader brokers call the smallest move, $0.01, a point. On one lot it is worth $1.
$0.10 as a pip
Many traders and signal providers call $0.10 a pip, worth $10 per lot. A "50-pip" stop is then $5.00 of price.
$1.00 as a pip
Some courses count each whole dollar as a pip. A "50-pip" stop is then $50 of price, ten times larger.
Use dollars of price
Enter your stop as a price distance, such as $12.50, and the calculator removes the ambiguity.
How to size a gold trade step by step
- Decide your risk
Pick a fixed share of the account, such as 1%. On $5,000 that is $50.
- Measure the stop in dollars
If you buy at 4,100.00 with a stop at 4,088.00, the stop is $12.00 away.
- Divide
Lots = risk ÷ (stop in dollars × 100). $50 ÷ ($12 × 100) = 0.042, rounded down to 0.04 lots.
- Check the margin
0.04 lots × 100 oz × $4,100 = $16,400 of gold. At 1:100 leverage, margin is $164.
- Round down, never up
Brokers accept lots in steps of 0.01. Rounding up adds risk you did not plan.
Why gold needs smaller positions than forex
Larger swings
Gold's daily range in dollars is far bigger, relative to lot value, than most currency pairs. A stop that suits EUR/USD is far too tight for gold.
News sensitivity
US inflation, jobs data, Federal Reserve decisions and geopolitical events can move gold by $20 or more in minutes.
Session behaviour
Gold is most active in the London and New York sessions. See the market hours clock for your time zone.
Wider spreads
Spreads on gold are wider than on major pairs and widen further around news and the daily rollover.
Worked example: a gold trade from Jakarta
- The plan
Budi has $2,000 and risks 1.5% ($30). He wants to sell gold at 4,120.00 with a stop at 4,135.00, $15.00 away.
- The lot size
$30 ÷ ($15 × 100) = 0.02 lots. Each $1 move is worth $2 to him.
- The margin
0.02 × 100 × $4,120 = $8,240 of gold. At 1:200 leverage the margin is $41.20.
- The trap he avoided
A signal said "stop 150 pips". Read as $0.10 pips, that is the same $15.00 stop; read as $0.01 points, it would have been only $1.50.
Working in dollars of price, not pips, kept Budi's risk exactly where he planned it.
Gold sizing mistakes
A 1-lot gold trade moves $100 per $1, several times more than 1 lot of EUR/USD per typical daily move.
A "20-pip" stop can mean $0.20, $2 or $20 depending on who wrote it.
Normal intraday noise can hit a $2 stop within minutes.
Some brokers use 10- or 1-ounce contracts on certain accounts; check before you trade.
Add this tool to your website
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Gold Lot Size Calculator FAQs
How much is 1 lot of gold?
At most brokers, one standard lot of XAU/USD is 100 troy ounces. With gold at $4,100, that is $410,000 of gold, controlled with margin.
How much is a pip worth on gold?
It depends on the broker's definition. A $0.01 move is worth $1 per lot, a $0.10 move $10 per lot and a $1.00 move $100 per lot.
What lot size should I use for gold with $1,000?
It depends on your risk and stop. Risking 1% ($10) with a $10 stop gives 0.01 lots, the minimum at most brokers. Gold's swings make small accounts hard to size safely.
How is margin calculated for gold?
Lots × 100 ounces × gold price ÷ leverage. 0.1 lots at $4,100 with 1:100 leverage needs $410 of margin. Some brokers set separate, lower leverage for metals.
Does the calculator work for silver?
Yes. Choose silver and it uses 5,000 ounces per lot, where a $0.01 move is worth $50 per lot.
What leverage do regulators allow on gold?
Under ESMA rules in the EU and FCA rules in the UK, retail leverage on gold is capped at 1:20. Offshore entities may offer much more.
Sources: ESMA: CFD product intervention measures, CME Group: gold futures contract specifications.