Lot in gold trading
A lot is the unit of trade size; on most platforms one standard lot of XAUUSD is 100 troy ounces, so a $1 move in gold equals $100 per lot.
Also called Standard lot, Lot size
A lot is the standard unit in which positions are sized. On most XAUUSD contracts one standard lot (1.00) is 100 troy ounces, matching the COMEX gold futures contract. Fractions of a lot are allowed: 0.10 (a mini lot, 10 ounces) and 0.01 (a micro lot, 1 ounce) are the common steps. Some platforms use a different contract size, so the specification always wins.
How it applies to gold trading
Lot size converts a price move into money. With a 100-ounce lot, profit or loss equals the dollar move times 100 times the number of lots. If gold rises from 4,000 to 4,012 while you hold 0.25 lots, the gain is $12 × 100 × 0.25 = $300. Had you held 1.00 lot, it would be $1,200, and a fall of the same size would be a $1,200 loss.
Lot size also drives margin. At 100:1 leverage, one standard lot at $4,000 requires $4,000 of margin ($400,000 notional ÷ 100); a micro lot requires $40. Choosing a lot size therefore means choosing both the dollar value of each point and how much of the account is locked up.
A common mistake
Picking a lot size by habit (“I always trade 0.10”) instead of deriving it from the planned risk and the stop distance. The right lot size is the output of a calculation, not an input.
See also: Mini and micro lot, Contract size, Position sizing, Notional value.
Frequently asked questions
How much is 1 lot of gold worth?
At a price of $4,000 per ounce, one 100-ounce lot has a notional value of $400,000. The margin needed depends on leverage: $4,000 at 100:1, $20,000 at 20:1.
What is the smallest lot I can trade on gold?
Most platforms allow 0.01 lot (1 ounce). Cent accounts and some micro contracts go smaller. Check the minimum volume in the contract specification.
Is one lot of gold the same on every platform?
Usually 100 ounces, but not always. A few platforms use 10-ounce or 1-ounce contracts, which changes every calculation. Read the specification before trading.