The one thing that never changes
Forget pips for a second. On almost every broker:
1.00 standard lot of XAUUSD = 100 ounces of gold.
So every $1 move in the gold price is worth:
| Lot size | Ounces | Value of a $1 move |
|---|---|---|
| 1.00 | 100 oz | $100 |
| 0.50 | 50 oz | $50 |
| 0.10 | 10 oz | $10 |
| 0.05 | 5 oz | $5 |
| 0.01 | 1 oz | $1 |
This is the number that actually matters for your account. Pips are just a way of counting the move.
Why brokers disagree on a “gold pip”
Gold is quoted with two decimals, for example 4,150.25. The smallest change is $0.01, sometimes called a point. Different platforms label things differently:
| Definition | One pip = | $1 move = | Pip value on 1.00 lot |
|---|---|---|---|
| Most common | $0.10 | 10 pips | $10 |
| Some brokers | $0.01 | 100 pips | $1 |
| A few, mainly in signals groups | $1.00 | 1 pip | $100 |
That’s why one person says “gold moved 300 pips” and another says the same move was “30 pips”. Both are describing a $30 move.
Tip: measure stops and targets in dollars of gold price, not pips. A $5 stop is a $5 stop on every platform.
Worked examples
Example 1: profit on a buy
You buy 0.10 lots at 4,150.00 and close at 4,162.50. - Move: 4,162.50 − 4,150.00 = $12.50 - Profit: $12.50 × 10 oz = $125 - In pips (common definition): 125 pips × $1 per pip = $125
Example 2: loss on a sell
You sell 0.02 lots at 4,180.00 and your stop at 4,186.00 is hit. - Move against you: $6.00 - Loss: $6 × 2 oz = $12
Example 3: what does the spread cost?
Your broker quotes gold at 4,150.10 / 4,150.35, a spread of $0.25. - On 1.00 lot: $0.25 × 100 = $25 per trade - On 0.10 lots: $2.50 - On 0.01 lots: $0.25
Spreads usually widen during news, the daily rollover and the Monday open, so the cost can be several times higher at those moments.
From pip value to position size
Once you know that 0.01 lots = $1 per $1 move, sizing a trade is simple:
Lots = Risk in $ ÷ (Stop distance in $ × 100)
If you risk $20 with an $8 stop: $20 ÷ ($8 × 100) = 0.025, so round down to 0.02 lots.
See worked examples for $100, $500 and $1,000 accounts in our XAUUSD lot size guide, or let the position size calculator do it for you.
Check your own broker in 30 seconds
- Open the contract specification for XAUUSD (often right-click the symbol, then “Specification”).
- Look for contract size. It’s usually 100. Some brokers use other sizes, especially on cent or micro accounts.
- Note the digits (usually 2) and the minimum lot (usually 0.01).
- Open a 0.01 lot trade on a demo account and watch: a $1 move should show about $1 of profit or loss.
Common mistakes
- Mixing up pip definitions when copying trades or signals from someone using a different broker.
- Sizing from margin, not from risk. High leverage lets you open bigger positions, but every $1 move still costs $100 per lot.
- Forgetting the spread on short-term trades, where it can eat a big share of the target.
Sources and further reading
Educational content only, not financial advice. Contract sizes and pip definitions vary by broker; always check your broker’s specifications. Trading leveraged products carries a high risk of loss.
Frequently asked questions
How much is 1 pip in XAUUSD?
Most brokers treat a $0.10 move in gold as one pip. On a standard 1.00 lot (100 oz), that’s $10 per pip; on 0.10 lots it’s $1; on 0.01 lots it’s $0.10. Some brokers use $0.01 as a pip instead, so always check your broker’s contract specification.
How many pips is a $1 move in gold?
With the common $0.10 pip definition, a $1 move (for example from 4,150.00 to 4,151.00) is 10 pips. With a $0.01 definition, the same move is 100 pips. The dollar profit or loss is identical either way.
How much do I make per $1 move on 0.01 lot of gold?
$1. On most brokers 0.01 lot of XAUUSD is 1 oz, so every $1 move in the gold price equals $1 of profit or loss.
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.