Point in gold trading

A point is the smallest increment in the quoted price. For XAUUSD quoted to two decimals, one point is $0.01. On platforms that call $0.10 a pip, the point is one tenth of a pip and is sometimes called a pipette. Many platform settings, such as stop levels, trailing stops and expert advisor inputs, are entered in points rather than pips or dollars.

How it applies to gold trading

Points are the unit your platform actually counts in. A $5 move in gold is 500 points. If a platform setting asks for a stop distance in points and you type 50, intending a $5 stop, you have set a $0.50 stop, which gold can cross in a single tick. On a 100-ounce lot one point is worth $1, so a 500-point move is $500 per lot.

Points also matter for reading a platform’s contract specification. The minimum stop distance, the freeze level near pending orders and the trailing-stop step are commonly stated in points.

Some platforms label this unit a tick, and expert advisor documentation often uses points and pips interchangeably, so test any automated setting on a demo account with a known price move before trusting it live.

A common mistake

Mixing points and pips when setting automated tools. A trailing stop meant to be $3 behind price needs 300 points, not 30. Always convert to dollars per ounce and back before saving a setting.

See also: Pip, Tick, Trailing stop.

Frequently asked questions