How to use this glossary
Terms are grouped by topic so related ideas sit together. Bold words are defined in this glossary. Where we have a full guide, the term links to it. For the basics in one place, start with What is XAUUSD?.
Prices and quotes
1. XAUUSD. The price of one troy ounce of gold in US dollars. XAU is the ISO code for gold; USD is the dollar.
2. Spot price. The price for (almost) immediate delivery. Most XAUUSD platforms quote a price based on spot gold.
3. Futures price. The price agreed today for delivery on a future date. COMEX futures usually sit slightly above spot because of interest costs. See spot gold vs gold futures.
4. Bid. The price at which you can sell.
5. Ask (offer). The price at which you can buy. Always slightly higher than the bid.
6. Spread. The gap between bid and ask, paid on every trade. Explained with dollar examples in our guide to XAUUSD trading costs.
7. Troy ounce. The unit gold is priced in: 31.1034768 grams. Not the same as the ordinary (avoirdupois) ounce of about 28.35 grams.
8. All-time high (ATH). The highest price ever traded. For spot gold, that was close to $5,589 an ounce in late January 2026.
9. Range. The distance between a period’s high and low. Gold’s average daily range is tracked on our volatility tool.
Contract maths
10. Lot. The unit of trade size. On most platforms, 1.00 lot of XAUUSD = 100 ounces.
11. Micro lot / mini lot. 0.01 lot (usually 1 oz) and 0.10 lot (usually 10 oz).
12. Pip. A small price step. On gold, platforms disagree: some use $0.01, some $0.10. See XAUUSD pip value explained.
13. Point / tick. The smallest price change a platform shows, often $0.01 on XAUUSD. COMEX gold futures move in $0.10 ticks.
14. Pip value. What one pip is worth in money for your lot size. Calculate it with the gold pip calculator.
15. Contract specification. The platform’s official details for XAUUSD: ounces per lot, minimum step, trading hours, margin and swap. Read it before your first trade.
16. COMEX. The CME Group exchange where the main US gold futures (symbol GC, 100 oz) trade.
17. MCX. India’s Multi Commodity Exchange, which lists rupee gold futures. See how to trade gold in India.
Orders and execution
18. Market order. Buy or sell immediately at the best available price.
19. Limit order. Buy below or sell above the current price, at your price or better.
20. Stop order. Buy above or sell below the current price once that level trades; used for breakouts.
21. Stop-loss. An order that closes a losing trade at a set level. In fast markets it can fill at a worse price.
22. Take-profit. An order that closes a winning trade at a set level.
23. Slippage. The difference between the price you expected and the price you got.
24. Gap. A jump between one price and the next with no trading in between, common at the Sunday open. See does gold trade on weekends?
For how each order behaves in real markets, read order types and execution for gold.
Leverage, margin and risk
25. Leverage. Controlling a large position with a small deposit. In the EU, retail gold CFD leverage is capped at 20:1.
26. Margin. The deposit your platform locks up to keep a leveraged position open. Estimate it with the gold margin calculator.
27. Free margin. Equity minus used margin; what’s left to absorb losses or open new trades.
28. Margin level. Equity divided by used margin, as a percentage.
29. Margin call. A warning that your margin level has fallen to a set threshold.
30. Stop-out. The platform automatically closing positions when the margin level falls too low. Explained in margin call and stop-out on gold.
31. Swap (rollover). The daily financing charge or credit for holding a leveraged position overnight.
32. Position sizing. Choosing a lot size so that a stop-loss hit loses only a planned amount. Use the position size calculator.
33. Risk-reward ratio (R). Potential loss versus potential gain on a trade. A trade risking $50 to make $100 is 1:2, or “2R”.
34. Drawdown. The fall from an account’s peak to its lowest point before a new peak.
35. Expectancy. The average amount you can expect to win or lose per trade over many trades. See trading math for gold traders.
Leverage multiplies losses as well as gains. A move that is small in percentage terms can wipe out a large share of a leveraged account. Always know your risk in money before you enter.
What moves gold
36. FOMC. The Federal Reserve’s rate-setting committee. Its decisions are among gold’s biggest events. See how to trade gold on Fed day.
37. Fed funds rate. The US policy interest rate, set as a range (3.75–4.00% after the September 2026 hike).
38. CPI. The US Consumer Price Index, the headline inflation measure, released monthly. See gold on CPI day.
39. PCE. Personal Consumption Expenditures prices, the Fed’s preferred inflation gauge.
40. NFP. Non-farm payrolls, the monthly US jobs report. See how to trade gold on NFP day.
41. Real yield. A bond yield minus expected inflation. Rising real yields usually weigh on gold, because gold pays no interest.
42. DXY (dollar index). A measure of the dollar against six major currencies. Gold often moves against it.
43. Safe haven. An asset investors buy in a crisis. Gold is the classic example, though in 2026 rate effects have often outweighed this.
44. Central bank buying. Purchases of gold by official institutions such as the People’s Bank of China, tracked by the World Gold Council.
45. ETF flows. Money moving in or out of gold-backed exchange-traded funds; a gauge of investor demand.
46. COT report. The CFTC’s weekly Commitments of Traders report, showing how different groups are positioned in gold futures. See how to read the COT report for gold.
Charts and analysis
47. Support and resistance. Price areas where buying or selling has repeatedly appeared. See how to identify support and resistance.
48. ATR (Average True Range). A volatility measure created by J. Welles Wilder in 1978: the average of each bar’s “true range”, which includes gaps.
49. Session. A block of trading hours named after a financial centre: Asia, London or New York. See London vs New York sessions.
50. Liquidity sweep. A quick push through an obvious high or low that triggers stop orders before price reverses. See liquidity sweeps on XAUUSD.
Quick reference table
| Term | One-line meaning | Typical XAUUSD value |
|---|---|---|
| Standard lot | Trade size | 100 oz |
| Micro lot | Smallest common size | 1 oz (0.01 lot) |
| $1 move on 1 lot | Profit or loss | $100 |
| $1 move on 0.01 lot | Profit or loss | $1 |
| Troy ounce | Weight unit | 31.1035 g |
| Daily break | Market pause | 5–6 pm New York time |
Where to go next
Knowing the words is step one. Step two is putting them together in a routine. The free Gold Trading Starter Kit turns the most important ones (contract maths, position sizing, best hours, news that moves gold) into one-page cheat sheets, and the strategy Academy shows them in action.
Sources
- CME Group: Gold futures contract specifications
- ESMA product intervention FAQs: CFD leverage limits
- CFTC: Commitments of Traders reports
- Federal Reserve: FOMC statement, September 16, 2026
- Average true range (background and formula)
Educational content only, not financial advice. Trading gold with leverage carries a high risk of loss.
Frequently asked questions
What does XAUUSD mean?
XAU is the international code for one troy ounce of gold, and USD is the US dollar. XAUUSD is the price of one troy ounce of gold in US dollars, so a quote of 4,120 means one ounce costs $4,120.
How many grams are in a troy ounce?
One troy ounce is 31.1034768 grams. Gold is always priced in troy ounces, which are about 10% heavier than the ordinary ounce used for food.
What is a lot in gold trading?
A standard lot of XAUUSD is usually 100 troy ounces, matching a COMEX gold futures contract. A mini lot (0.10) is 10 ounces and a micro lot (0.01) is 1 ounce, but always check your platform’s contract specification.
What is the difference between a pip and a point in gold?
Platforms define them differently. Many call $0.01 a point and $0.10 a pip, while others use $0.01 as a pip. A $1 move in gold is $100 on a 100-ounce lot whatever the label.
What does FOMC mean in gold news?
FOMC is the Federal Open Market Committee, the Federal Reserve group that sets US interest rates. Its decisions are among the biggest scheduled events for gold.
Sources and further reading
- CME Group — Gold futures overview — Contract specifications and trading hours for COMEX gold
- CFTC — Commitments of Traders — Weekly futures positioning, including gold
- Investor.gov — Stop order — How stop orders work, and their limits in fast markets
External sites are independent of XAUUSD Global. Check dates and data yourself.