Ounces vs Currency Units
A standard lot is 100 troy ounces. At $3,000/oz gold, 1 standard lot carries $300,000 in notional exposure. Sizing must floor to 0.01 increments (1 oz) to avoid over-leveraging small accounts.
Commodities · 100 oz Standard Contract
Gold Position Size Calculator (XAU/USD)
Calculate exact lot sizes for spot gold based on your dollar risk budget and technical stop distance. Configured for institutional 100 troy ounce contract specifications.
1 lots = 100 oz · 1 USD / oz = $100 / lots
Single Trade Risk%
Advanced SpecificationsContract size, entry price & leverage
Minimum lot increment0.01 standard lots
Contract specifications may vary by broker. Verify your broker's trading specification window.
Gold · XAU/USD Contract Specifications
Specifications derived from standard institutional Gold · XAU/USD contracts.
Contract Size100 oz / lots1 lots = 100 oz
Risk Distance Unit1USD / oz
Minimum Lot Step0.01 standard lotsFloor increment
Quote CurrencyUSDBase: XAU
Step-by-step arithmetic
Step-by-Step Gold Sizing Example
Account equity $10,000 USD, 1% risk budget ($100 USD), Long XAU/USD with a $5.00/oz technical stop distance.
Equity Base$10,000 USDAccount Capital
Risk Budget1.0% ($100.00 USD)Max Stop Loss
Stop Distance$5.00 / oz (500 cents)Chart Invalidation
Suggested Position0.20 Standard Lots (20 oz)Floored Lot Size
20 oz × $5.00/oz stop distance = exactly $100.00 USD risk at stop out.
Why Gold Position Sizing is Unique
Traders often miscalculate gold by treating it like an FX pair. Gold contracts are volume-denominated in troy ounces, creating massive notional exposure per standard lot.
Dollar Distance vs Pips
While some brokers display cents as pips (0.01 = 1 pip), professional execution relies on the pure dollar distance between entry and invalidation level ($1.00 price change = $100 per lot).
Intraday Volatility Swings
Gold regularly swings $20 to $50 in a single trading session. Setting arbitrary fixed lot sizes without calculating dollar risk budget leads to severe drawdown during normal market expansions.
Compare Position Sizing on Other Instruments
Explore contract specifications and risk calculation rules across major markets.
Frequently Asked Questions about Gold Sizing
How many ounces are in 1 standard lot of gold?
1 standard lot of XAU/USD equals 100 troy ounces. A mini lot (0.10) equals 10 ounces, and a micro lot (0.01) equals 1 ounce.
What is 1 pip worth on XAU/USD?
If quoted to two decimal places (e.g. 2950.50), 0.01 is 1 cent (often called 1 pip), worth $1.00 USD per standard lot. A $1.00 move in gold price equals $100.00 USD per standard lot.
Does leverage change my recommended gold lot size?
No. Recommended lot size is determined purely by your dollar risk budget and stop loss distance. Leverage only governs the required margin to open the position.
What if my broker quotes gold with 1 decimal place?
Some brokers quote gold to 1 decimal place ($0.10 increment). Always use the exact price distance in dollars (Entry Price minus Stop Loss Price) to ensure sizing remains accurate.