How To Calculate Gold Lot Size Manually (XAUUSD)

Learn the exact formulas and logic behind your Gold (XAUSD) Lot Size Calculator so you can calculate position size even without using any tool.

---

Yes, you can let a Gold Position Size Calculator do everything in one click—but if you really want to trade XAUUSD like a professional, you need to understand how the numbers are actually calculated.

In this guide, we’ll walk through how to calculate your gold lot size manually using simple formulas, real-world examples, and easy-to-read tables. By the end, you’ll be able to size your position correctly even if all you have is a chart, a notepad, and a calculator.

1. Key Concepts Before You Calculate Gold Lot Size

1.2 What is a pip in Gold?

Gold is usually quoted with two decimal places, for example: 4007.25. In this case, pip movement is defined like this:

1 pip for XAUUSD (2-decimal quote) = 0.01 in price

If price moves from 4007.25 → 4007.85, that’s a 60-pip move:

(4007.85 − 4007.25) × 100 = 60 pips

1.3 Pip value for Gold (XAUUSD)

With the usual 100 oz contract size, a very helpful approximation is:

1.00 lot XAUUSD ≈ $1 per pip (when pip = 0.01) 0.10 lot ≈ $0.10 per pip 0.01 lot ≈ $0.01 per pip

This is the same assumption used in the on-page calculator: “Assumes XAUUSD pip value ≈ $1 per 1.00 standard lot (2nd decimal pip).”

2. Core Formula: How To Manually Calculate Gold Lot Size

The calculator on this site uses a very simple but powerful formula. You can replicate it manually if you know just three things:

• Your account balance
• Your risk percentage per trade (e.g., 1%)
• Your stop-loss distance in pips

STEP 1Calculate risk amount (in account currency)

First, figure out how much money you’re willing to lose on this trade, based on your risk percentage:

Risk Amount (Base Currency) = Account Balance × (Risk % ÷ 100)

Example (USD account):

Account balance = $5,000 Risk % = 1% Risk Amount = 5000 × (1 ÷ 100) = $50

STEP 2Convert risk to USD (if needed)

If your account is already in USD, you can skip this step. If your base currency is EUR, GBP, or something else, convert your risk amount into USD using the USD→Base FX rate:

Risk in USD =
  • Risk Amount (Base), if Base = USD   • Risk Amount (Base) ÷ (USD→Base Rate), if Base ≠ USD

Example (EUR account, 1 USD = 0.92 EUR):

Risk Amount (EUR) = €5,000 × 1% = €50 Risk in USD = 50 ÷ 0.92 ≈ $54.35

STEP 3Find your stop-loss distance (in pips)

Use your chart to define entry and stop-loss levels, then translate that distance into pips:

SL (pips) = |Entry Price − SL Price| × 100    (for 2-decimal XAUUSD)

Example:

Entry Price = 4007.00 SL Price = 3995.50 SL (pips) = |4007.00 − 3995.50| × 100 = 11.5 × 100 = 1,150 pips

STEP 4Apply the gold lot size formula

Now you have your risk (in USD) and your stop-loss distance (in pips). Since XAUUSD pip value at 1.00 lot is approximately $1 per pip, the core formula becomes:

Lot Size = Risk in USD ÷ (Pip Value per 1 lot × SL (pips))

With Pip Value per 1 lot ≈ $1, this simplifies to: Lot Size = Risk in USD ÷ SL (pips)

3. Example 1: USD Account, 1% Risk

Let’s mirror what many traders use by default.

4. Example 2: EUR Account With FX Conversion

Now let’s see what happens if your account is not in USD.

Given:

• Account currency: EUR
• Account balance: €5,000
• Risk per trade: 1%
• Entry price: 4007.00
• Stop-loss price: 3995.50
• USD→Base FX Rate: 1 USD = 0.92 EUR

Step 1 – Risk in EUR

Risk Amount (EUR) = 5,000 × 1% = €50

Step 2 – Convert to USD

Risk in USD = 50 ÷ 0.92 ≈ $54.35

Step 3 – Same SL distance as before

SL (pips) = 1,150 pips

Step 4 – Lot size

Lot Size = 54.35 ÷ 1150 ≈ 0.04726 lots → Rounded to broker step: 0.04 or 0.05 lots (depending on how strict you are with risk)

5. Quick Reference Tables For Manual Gold Lot Sizing

5.1 Risk % vs Risk Amount (for $5,000 account)

5.2 Lot size for different SL distances (1% risk, $5,000 balance)

6. Final Checklist: Manual Gold Lot Size Calculation

Whenever you place a gold trade, run through this quick checklist:

• Define your entry and stop-loss on the chart.
• Decide your risk % per trade (e.g., 0.5%–1%).
• Calculate risk amount in your account currency.
• If needed, convert that risk into USD.
• Measure SL distance in pips: SL (pips) = |Entry − SL| × 100.
• Apply the formula: Lot Size = Risk in USD ÷ SL (pips).
• Round down to the nearest tradable lot step (usually 0.01).
• Double-check the actual $ loss at SL using pip value.

You can do all of this math by hand—but if you want to speed it up and remove manual error, you can always plug the same numbers into the Gold (XAUSD) Lot Size Calculator on this page and get instant, risk-based position sizes for your XAUUSD trades.