Why a Pip Is a Cent on Gold
On gold, one pip is a price move of $0.01. For a standard lot of 100 troy ounces, that pip is worth $1.00. This is fixed by the contract specification, not by the market price. So when you see a daily range of, say, several dollars, that translates into hundreds of pips. A stop-loss placed a few dollars away is already a large number of pips, and the dollar risk per lot scales directly with that distance.
Because the pip value is constant per standard lot, you can compare stop distances in pips across instruments only if you remember that gold's pip is a cent. A 100-pip stop on gold is a $1.00 move in price; on a typical forex pair, 100 pips might be a much smaller or larger price move depending on the pair. The calculator above converts your stop distance and lot size into risk in your account currency, so you don't have to do the mental math.
| 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.
Stop Distance and Lot Size Trade Off at Fixed Risk
If you risk a fixed amount per trade, the stop distance and the lot size are inversely related. Wider stop means smaller lot; tighter stop means larger lot. On gold, because a pip is a cent, a stop that is wide in pip terms will force a very small lot if you keep risk constant. For example, moving from a 0.10 lot to a 1 lot multiplies the pip value by ten, so to keep the same risk you must divide the stop distance by ten. The calculator above lets you adjust either side and see the risk in your currency.
This trade-off is mechanical, but it has practical consequences. A tight stop on gold may be hit by normal noise, while a wide stop with a tiny lot may leave little room for profit if the trade works. The key is to choose a stop distance based on market structure, then let the lot size follow from your fixed risk. Never adjust the lot size to fit a stop that is too tight for gold's range; instead, accept a smaller position or skip the trade.
| 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 |
Practical Sizing Without Assuming an Account Currency
Your account currency matters because the pip value of $1.00 per standard lot is in U.S. dollars. If your account is in another currency, the calculator above converts the risk into your currency using the current exchange rate. That means the same stop distance and lot size will show a different risk figure depending on your account denomination. Always check the calculator's output in your own currency before placing the trade.
Also remember that gold's contract size is 100 troy ounces per standard lot. You can trade 0.01, 0.10 or 1 lot, and the pip value scales proportionally: 0.01 lot gives $0.01 per pip, 0.10 lot gives $0.10 per pip, and 1 lot gives $1.00 per pip. There is no need to memorize these; the calculator above applies them automatically. Your job is to set a stop distance that makes sense for gold's volatility and then choose the lot size that fits your risk. The market's current price and your account balance are already handled by the tool.
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 →