The three numbers that define every XAU/USD calculation
A standard lot of XAU/USD is 100 troy ounces of gold. That is the contract size — the quantity the quoted price applies to. Everything downstream, from pip value to position sizing, is derived from it. The lot sizes you will actually see written are 0.01, 0.10 and 1, so a 0.01 lot is one hundredth of a standard lot and a 0.10 lot is one tenth.
A pip in XAU/USD is $0.01 — one US cent of the quoted gold price. That is the increment by which the price is measured, and it is the unit your stop distance, target distance and spread are counted in. The pip value is $1.00 per standard lot, meaning each $0.01 move in the quoted price is worth one US dollar per 100-ounce lot. Scale the lot size and the pip value scales with it.
| Instrument class | Spot gold |
|---|---|
| One pip | 0.01 |
| Standard lot | 100 troy ounces |
| Value of one pip per lot | $1.00 |
| Typical spread | 30 pips — · FxPro verified |
| Notional value of one lot | — |
| Margin on one lot at 1:30 / 1:100 / 1:500 | — |
The last two rows move with the market and are filled in from the live rate; everything above them is fixed by the contract. Leverage available to you depends on your regulator and account type — check it in the platform before you size a position.
What each specification governs once you are in a position
The contract size governs notional exposure: it converts a price into the amount of gold your position represents, and it is the multiplier that turns a price change into a profit or loss in the quote currency. The pip governs measurement: it is the granularity of the market you are trading, so a spread, a stop and a target are all expressed in the same unit. The pip value governs translation: it is the bridge between a price move and the money that move represents on your specific lot size.
Because these three are fixed for the instrument, they are the stable inputs in every gold calculation. The live figures that sit above this text — price, spread, margin, pip value for your chosen lot — are the ones that move with the market. Treat the specification as the constant and the market data as the variable.
| Currency | Central bank | Policy rate | What moves it |
|---|---|---|---|
| XAU | No issuer | Priced in USD | real US yields · FOMC · fund flows |
| USD | Federal Reserve (Fed) | Federal funds target range | FOMC · CPI · jobs data |
Where brokers diverge, and why you must check
The specification above is the convention for XAU/USD, not a universal law. Brokers can differ on contract size, on the pip increment, on the pip value, and on how lot sizes are labelled. A broker may quote gold with a different contract size, or define a pip at a different decimal place, and either change re-scales every calculation you make. Your account currency also matters: the pip value stated here is in US dollars, and if your account is denominated in something else, your platform converts it, so the number you see in your own currency will not be $1.00.
Before you size a position, confirm the contract specification on your own broker's contract page and in your platform's instrument details. If the contract size or pip definition differs from the convention here, use the broker's figures in every calculation — the live calculator above reports the values that apply to the instrument as it is actually traded, and those are the ones that govern your risk.
Spreads are tightest when two sessions are open at once and widest when one desk has gone home and the next has not arrived. The shaded band is the overlap.
Gold pip values use the fixed contract specification combined with live ECB reference rates. All values are indicative and for educational purposes — not live trading quotes. See full pip value table →