Been trying to figure out proper position sizing for gold trades but the math keeps throwing me off.
Anyone else struggle with getting the lot calculations right on XAUUSD? The pip values mess with my head compared to regular currency pairs.
Use 0.01 lots per thousand dollars
Most platforms have built-in position calculators. Just enter your risk amount and stop loss distance.
Stop overcomplicating this. Gold contracts are 100 ounces per lot with most brokers. Every $1 move = $100 profit/loss on a standard lot. Skip the pip calculators - think in dollars instead. Say you want to risk $200 with gold at 2000 and your stop at 1980. That’s a $20 move, so your position size is $200 ÷ $20 = 10 ounces = 0.10 lots. Just verify your broker uses the same contract size first. Some use different specs that’ll mess up your math.
Just risk 2% and divide by your stop distance.
Gold lot sizing clicks after you do it a few times. This video explains the calculations really well.
Start small until the math feels automatic.
XAUUSD position sizing finally clicked when I started treating each $0.10 move as 1 pip. Forget traditional pip calculations - they just confuse things.
Here’s my simple approach: 0.01 lot = $100 per $10 move in gold. Want to risk $50 with a $20 stop? Use 0.025 lots.
Most brokers show gold as 100 ounces per contract. I use this to double-check when position calculators spit out weird numbers.
I don’t trust online calculators anymore after they screwed me with wrong position sizes early on. Do the math yourself - it’s easier once you get it.
Gold pip value is $1 per 0.01 lot when price moves 0.10 points. XAUUSD goes from 2000.00 to 2000.10? You make or lose $1 on a micro lot. Skip the complex calculators. Risk 1-2% per trade. Got $5000 and want to risk $100? Stop’s 20 points away? Do 100 ÷ 20 = 5. That’s 0.05 lots max. Most traders overthink this stuff and blow their accounts with huge positions.
Gold lots trip up everyone initially, but it’s all about your broker’s contract size.
Most brokers run XAUUSD at 100 ounces per standard lot. Gold moves $1 per ounce? You’re up or down $100 on a full lot.
I check my broker specs first since some use different contract sizes. Then I work backwards from my risk to figure out position size.
Once you’ve got your broker’s setup down, the math becomes second nature.