⚡ XAU/USD Pips and Lot Size Calculator
Precise, broker-agnostic position sizing for gold trading
Account & Risk Settings
Trade Parameters
🧮 Pip Calculator
Convert between price levels and pips, or calculate pips from two price points
Broker Specifications
📊 Calculation Results
📚 Complete Guide to XAU/USD Trading
🔹 What Is XAU/USD?
XAU/USD is the symbol for Gold vs. the U.S. Dollar — showing how many dollars you need to buy one troy ounce of gold. It’s one of the most volatile trading pairs in the market, offering high profit potential but also high risk. That’s why calculating lot size and pip value correctly is essential to avoid losses.
🔹 Understanding XAU/USD Lot Sizes
| Lot Type | Gold Quantity (Troy Ounces) | Typical Pip Value (USD) | Description |
|---|---|---|---|
| Standard Lot | 100 oz | $1 per 0.01 pip | Default for most brokers |
| Mini Lot | 10 oz | $0.10 per 0.01 pip | Medium-sized traders |
| Micro Lot | 1 oz | $0.01 per 0.01 pip | Small account traders |
➡️ 1 Standard Lot = 100 ounces of gold. So, a $1 movement in gold = $100 profit or loss on a standard lot.
🔹 How Gold Pips Work (XAU/USD Pip Definition)
Unlike currency pairs like EUR/USD, where a pip = 0.0001, in XAU/USD,
🔸 1 pip = 0.01 (one cent).
✅ Example:
- From 1965.00 → 1965.50 = 50 pips
- From 1965.00 → 1966.00 = 100 pips
🔹 How to Calculate Pip Value for XAU/USD
Example for 1 lot:
So, 1 pip = $1 when trading 1 standard lot of gold.
🔹 XAU/USD Lot Size Formula (With Example)
Example:
- Account = $5,000
- Risk = 1% = $50
- Stop Loss = 50 pips
- Pip Value = $1
✅ You can open 1.00 lot and risk exactly $50 on the trade.
🔹 XAU/USD Margin Calculation
Example:
- Gold Price = 1965.40
- Leverage = 1:100
➡️ You’ll need $1,965.40 margin to open a 1-lot gold trade at 100x leverage.
🔹 Full Example — XAU/USD Lot & Pip in Action
| Parameter | Value |
|---|---|
| Account Balance | $5,000 |
| Risk | 1% ($50) |
| Entry Price | 1965.40 |
| Stop Loss | 50 pips ($0.50) |
| Pip Size | 0.01 |
| Contract Size | 100 oz |
| Leverage | 1:100 |
| Pip Value | $1 |
| Lot Size | 1.00 lot |
| Margin Required | $1,965.40 |
✅ A 50-pip loss = $50 risk (1% of account).
🔹 Quick Reference Table
| Pip Movement | 1 Lot | 0.10 Lot | 0.01 Lot |
|---|---|---|---|
| 10 pips ($0.10) | $10 | $1 | $0.10 |
| 50 pips ($0.50) | $50 | $5 | $0.50 |
| 100 pips ($1.00) | $100 | $10 | $1 |
🔹 Tips for Accurate XAU/USD Calculations
| Tip | Explanation |
|---|---|
| ✅ Check Broker Contract Size | Some brokers use 10 oz/lot instead of 100 oz. |
| ✅ Confirm Pip Definition | Usually 0.01, but confirm in MT4/MT5 specs. |
| ✅ Adjust for Currency Conversion | If your account isn’t in USD, convert pip value accordingly. |
| ✅ Set Risk % Consistently | Use 1–2% risk max per trade. |
| ✅ Monitor Spreads | Wider spreads during rollover can affect pip calculations. |
🔹 Why Lot Size & Pip Accuracy Matters in Gold Trading
- XAU/USD moves fast and sharply — a small mistake in lot size can cause large losses.
- Correct sizing ensures consistent risk management.
- It also helps maintain discipline and profitability over time.
🔹 TL;DR Summary
| Metric | Value |
|---|---|
| 1 Lot = | 100 oz |
| 1 Pip = | $0.01 |
| Pip Value = | $1 per lot |
| Risk Formula = | Risk ÷ (Stop Loss × Pip Value) |
| Example (1% risk on $5,000, 50 SL) = | 1 Lot |
| Margin (1:100 leverage) ≈ | $1,965.40 |
🔹 Conclusion
Calculating XAU/USD lot size and pip value accurately is the key to safe, consistent gold trading. With the formulas above, you can control your risk, understand your margin requirements, and trade gold confidently — whether you’re using MetaTrader, TradingView, or a broker’s platform.
Use the calculator above to get instant, accurate calculations tailored to your broker’s specifications and your personal risk management strategy. Remember: proper position sizing is the foundation of successful trading!
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