How pip value is calculated for XAU/USD
Gold (XAU/USD) is quoted in US dollars per troy ounce. This calculator uses the common convention of one pip = 0.01 and one standard lot = 100 ounces, so one pip on one lot is worth $1.00, and a $1.00 move in the gold price is 100 pips. Brokers differ: some call $0.10 a pip, and contract sizes vary, so check your platform's specification before relying on the number.
Worked example
An account of $10,000.00 risks 1% on a XAU/USD trade with a stop loss 500 pips from entry.
- 1. Risk amount: $10,000.00 × (1% ÷ 100) = $100.00
- 2. Pip value per standard lot: 0.01 × 100 = $1.00
- 3. Position size: $100.00 ÷ (500 pips × $1.00) = 0.20 lots
Most brokers accept lots in steps of 0.01, so round down to 0.20 lots. If the stop loss is hit, the loss is about $100.00, before spread, commission and any slippage.
These are the calculator's default inputs above, so its result matches.