Gold (XAUUSD) 1 Lot Price Moves and Margin: Overseas FX Worked Examples
Unsure how many ounces 1 lot of gold is, or how much it moves when the price changes by $1?
In short, 1 lot is generally 100 ounces, so a $1 move in price means $100 in profit or loss.
This article shows the profit and loss and required margin calculations with hypothetical values. By the end, you can work out a lot size that suits you.
In short: for gold, a $1 move is about $100 per 1 lot
- 1 lot is generally 100 troy ounces, but specifications differ by broker
- With 1 lot, a $1 price move means $100 in profit or loss (when 1 lot = 100 ounces)
- Required margin can be estimated as price × 100 × lots ÷ leverage
- Many brokers apply leverage and margin rates for gold separate from currency pairs, so check the official page
Gold CFD basics and the size of 1 lot
Gold (XAUUSD) at an overseas FX broker is a CFD that trades the price of gold. The price is shown in dollars per ounce.
1 lot is generally taken to be 100 troy ounces. The unit is completely different from the 100,000 units of a currency pair.
- The quantity in 1 lot (100 ounces, or another quantity)
- The minimum lot and the lot step
- The number of price digits shown (one or two decimal places)
- The definition of a pip (differs by broker)
Calculating price moves: think in dollars
The definition of a gold pip differs by broker. To avoid confusion, it is easier to think in how many dollars the price moved.
The formula is: profit or loss (USD) = price change (USD) × 100 × lots. It assumes 1 lot = 100 ounces.
| Price change | 1 lot | 0.1 lot | 0.01 lot |
|---|---|---|---|
| $0.1 | $10 | $1 | $0.1 |
| $1 | $100 | $10 | $1 |
| $10 | $1,000 | $100 | $10 |
Gold can move anywhere from a few dollars to tens of dollars in a day. Even with a small lot, the range of profit and loss can be wider than you expect.
Calculating required margin with a hypothetical example
Required margin formula
Required margin = price × 100 × lots ÷ leverage (when 1 lot = 100 ounces)
Assume the price is $4,000. The trade value of 1 lot is $4,000 × 100, or $400,000.
| Lots | Trade value | Leverage 500x | Leverage 100x |
|---|---|---|---|
| 1 lot | $400,000 | $800 | $4,000 |
| 0.1 lot | $40,000 | $80 | $400 |
| 0.01 lot | $4,000 | $8 | $40 |
Many brokers set a leverage cap and margin rate for gold separate from currency pairs. It also changes by account type, so check the official page.
Differences from currency pairs and points to watch when trading
| Item | Difference from currency pairs | Caution |
|---|---|---|
| Size of moves | The amount per lot tends to be larger | Start with a small lot |
| Spread | Often wider than currency pairs | Compare by broker and account type |
| Trading hours | Maintenance windows may be set | Watch your plans for closing and stop-losses |
| Swap | The calculation method often differs from currency pairs | Check the official figures before holding |
| Around data releases | Spreads tend to widen | Be careful when holding a position over a release |
How to choose a lot size for gold
Lot size is easier to decide by working backward from the loss you can accept. It follows the same idea as limiting each loss to about 2% of your capital.
- 1
Decide the acceptable loss
As a share of your capital, set the upper limit for one loss.
- 2
Set the stop-loss width in dollars
Decide the distance from the entry price to the stop-loss price in dollars.
- 3
Calculate the lot size
Lots = acceptable loss ÷ (stop-loss width × 100).
- 4
Check the margin
Confirm that you have headroom in required margin and margin level.
As an example, assume capital of $1,000, an acceptable loss of 2%, or $20, and a stop-loss width of $5. The lot size is 20 ÷ (5 × 100), or 0.04 lot.
As a check, 0.04 lot is 4 ounces. A $5 move gives 4 × 5, or $20, which matches the acceptable loss.
How gold relates to cashback
Whether gold is eligible for returns, and whether it uses the same rate as currency pairs, differs by broker. Return amounts are not yet confirmed, and we will post them on each broker's page at launch.
Gold moves a lot per lot, and trading volume tends to grow. However, as volume grows, the range of losses widens in the same proportion.
Judge by real cost, not just the return amount
Comparing real cost, which is spread and commission minus returns, makes your judgment less likely to waver. We do not recommend raising your lot size just for returns.
Enter lots and leverage to estimate required margin. Check gold specifications on the official page.
Calculate required marginFAQ
Q.How many ounces is 1 lot of gold?
It is generally 100 troy ounces. The contract size may differ by broker or account type, so check the official page before trading.
Q.How much does 1 lot move when gold moves $1?
When 1 lot = 100 ounces, a $1 move means $100 in profit or loss. That is $10 for 0.1 lot and $1 for 0.01 lot.
Q.How do I calculate required margin for gold?
You can estimate it as price × 100 × lots ÷ leverage. Assuming a price of $4,000, 500x leverage and 1 lot, it is $800. Actual conditions differ by broker.
Q.Is gold trading also eligible for cashback?
It differs by broker. Whether it is eligible and whether it uses the same rate as currency pairs are not yet confirmed, and we will post them on each broker's page at launch.
This article is for information purposes only and is not investment advice. Conditions may change, so please check each broker's official page for the latest information. Offshore FX and CFD trading carries a risk of losses exceeding your principal.
