Trading Tips
How to Calculate Lot Size on Gold (XAUUSD): Step-by-Step
Gold (XAUUSD) is the most popular instrument for new traders — and the fastest way to blow a small account. The reason is almost always the same: the lot size was too big for the stop loss. This guide shows you exactly how to calculate it.
Step 1: Know what one lot of gold means
On most brokers, including Exness, gold contracts work like this:
| Lot size | Ounces of gold | Value of a $1 move in price |
|---|---|---|
| 1.00 (standard) | 100 oz | $100 |
| 0.10 (mini) | 10 oz | $10 |
| 0.01 (micro) | 1 oz | $1 |
So if gold moves from 2,400.00 to 2,401.00 (a $1 move) and you hold 0.01 lot, you gain or lose $1. Always confirm the contract size in your platform's symbol specification — it can differ between account types.
Step 2: Decide how much you are willing to lose
Professional traders risk a small, fixed percentage per trade — usually 1% or less.
- $200 account × 1% = $2 risk
- $500 account × 1% = $5 risk
- $1,000 account × 1% = $10 risk
Step 3: Measure your stop loss in dollars of price
Put your stop loss where your trade idea is proven wrong (below support for a buy, above resistance for a sell). Then measure the distance:
- Entry 2,400.00, stop 2,395.00 → stop distance = $5.00
Step 4: Use the formula
Lot size = Risk in $ ÷ (Stop distance in $ × 100)
### Example 1 — $500 account
- Risk: $5 (1%)
- Stop distance: $5.00
- Lot size = 5 ÷ (5 × 100) = 0.01 lot
### Example 2 — $2,000 account
- Risk: $20 (1%)
- Stop distance: $8.00
- Lot size = 20 ÷ (8 × 100) = 0.025 → round down to 0.02 lot
Always round down, never up.
Why gold needs wider stops
Gold often moves $15–$40 in a single day and can jump $10+ in minutes on US news like NFP or CPI. A tight $1 stop gets hit by normal noise. A wider stop is fine — as long as you reduce the lot size to keep the dollar risk the same.
Skip the maths: use the calculator
Use the free Danipips Position Size Calculator — enter your balance, risk %, and stop distance and it gives you the lot size. Check the dollar value of each move with the Pip Value Calculator.
Common mistakes
- Opening 0.10 lot on a $100 account — a $10 move wipes out the whole account.
- Moving the stop loss further away after entering.
- Adding more trades in the same direction ("averaging down").
- Trading gold during big news without reducing size.
Practise first
Test this method on a free demo account before risking real money. You can open a free demo or live account with low-spread gold trading at Exness.
Trading gold involves high risk. Never trade money you cannot afford to lose.
