Lot step in gold trading

A lot step (volume step) is the increment allowed between valid position sizes. With a 0.01 step you can trade 0.01, 0.02, 0.03 lots and so on; with a 0.10 step only 0.10, 0.20, 0.30 and so on. It is listed in the symbol’s contract specification next to the minimum and maximum volume.

How it applies to gold trading

Position sizing formulas rarely produce a round number. If a calculation says 0.137 lots, the order has to be rounded to a valid step, and rounding up adds risk while rounding down reduces it. On a 0.01 step the difference is small; on a 0.10 step it can be large for a small account. Entering a size that does not match the step is one of the causes of the “invalid volume” error on MT5.

Lot step also matters for partial closes. Closing a third of 0.10 lots is impossible on a 0.01 step, because 0.033 is not valid, so traders plan sizes that split cleanly.

Worked example

Example (hypothetical numbers): with $3,000 equity and 1% risk you can lose $30. A $4.50 stop means 30 ÷ (4.50 × 100) = 0.0667 lots. With a 0.01 step you would round down to 0.06 lots, risking $27. With a 0.10 step the nearest valid size above the minimum would be 0.10 lots, risking $45, which is 1.5% and over the plan.

A common mistake

Rounding to the nearest step instead of rounding down. Always round toward less risk.

See also: Minimum lot, Lot, Position sizing, Partial close.

Frequently asked questions