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XAUUSD Pip Value: The Simple Gold Math

Most new gold traders get the pip math wrong and risk too much. Here is the simple way to work it out.

🗓 Updated ⏱ 2 min read✅ 100% free

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Trading involves risk and you can lose money. Results vary.

On most brokers one pip on XAUUSD is a $0.10 move in the gold price. With a standard lot (100 ounces) one pip is worth $10, a mini lot (0.10) is worth $1 and a micro lot (0.01) is worth $0.10. Always check your broker's contract size. Trading gold carries high risk and most traders lose money.

1Gold pip value by lot size

  1. 1.00 lot (100 oz): $10 per pip, $100 per $1 move
  2. 0.10 lot (10 oz): $1 per pip, $10 per $1 move
  3. 0.01 lot (1 oz): $0.10 per pip, $1 per $1 move

2How to work out your lot size

Risk in dollars, divided by stop in pips, divided by pip value.

Say you have $500 and risk 1%, which is $5. Your stop is 50 pips ($5 in gold price). At 0.01 lot each pip is $0.10, so 50 pips is $5. That makes 0.01 lot the right size.

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3Why some brokers show points, not pips

Decimals differ.

Some platforms quote gold to two decimals and call $0.01 a point. Ten points equal one pip. Check your broker's contract specs in MT5 by right clicking the symbol.

4Learn gold risk management properly

Sizing is the first lesson every serious trader learns.

Our partner gold academy covers risk management in its course library, free with a funded broker account.

Ready to look inside? See Gold Boss Academy, or browse our gold trading guides.

Questions people ask

How many pips is $1 on gold?

Usually 10 pips, since one pip is $0.10.

What lot size should a beginner use on gold?

Most start at 0.01 so each $1 move is only $1.

Is pip value the same on every broker?

Not always. Check the contract size in your platform.

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