Position Sizing for XAUUSD: Lots, Points and Risk Per Trade
The number of lots you trade should be calculated, not guessed. The inputs are your risk in money, the distance to your stop-loss, and the instrument's contract size.
Gold contract basics
On most brokers, 1 standard lot of XAUUSD = 100 troy ounces. So a price move of 1.00 (one dollar per ounce) equals about 100 USD per lot, or 1 USD per 0.01 lot. Contract specifications differ between brokers — always check yours.
Points, pips and dollars
"Points" and "pips" mean different things on different platforms; some quote gold to two decimals where 0.01 is one point. Do your maths in price distance, e.g. "6.65 dollars between entry and stop", to avoid confusion.
The formula
lots = risk amount / (stop distance × contract size)
Worked example
- Account: 1,000 USD, risk 1% = 10 USD
- Entry 3312.65, stop 3306.00 → distance 6.65
- Contract size 100 oz
- lots = 10 / (6.65 × 100) = 0.015, round down to 0.01
Rounding down keeps the actual risk below your limit (0.01 lot here risks 6.65 USD).
Choosing the percentage
Many traders risk 0.5–1% per trade. Smaller risk gives more room to survive a losing streak; see trading psychology for why that matters.
Watch out for
- Costs: spread eats a larger share of a small stop.
- Leverage and margin: they limit maximum size; they do not define correct size.
- Gaps and news slippage: the stop may fill worse than planned.
Link to your journal
Record risk in money and in R for every trade in your journal to see how consistently you follow your own sizing rule.
Questions & answers
How many ounces is one lot of gold?
Typically 100 troy ounces, but check your broker specification because some offer different contract sizes.
How much is one dollar move worth on 0.01 lot?
About 1 USD on a 100-ounce contract. A 10 dollar move on 0.10 lot is therefore about 100 USD.
Should I round lot size up or down?
Down, so the true risk never exceeds your chosen amount.
Does BlessedForex calculate lot size for me?
The platform shows entry, stop, targets and R:R. Lot size depends on your account and broker, so calculate it with your own risk rule. The demo bridge uses a fixed lot size set by the administrator.