Lot sizes in ounces and dollars
| Name | Lots | Gold | 1 pip | $1 move | Value at $4,000/oz |
|---|---|---|---|---|---|
| Standard | 1.00 | 100 oz | $10.00 | $100 | $400,000 |
| Mini | 0.10 | 10 oz | $1.00 | $10 | $40,000 |
| Micro | 0.01 | 1 oz | $0.10 | $1 | $4,000 |
0.01 is the smallest order at most brokers, and sizes step up in 0.01s. So 0.07 lots is 7 oz, 0.35 lots is 35 oz, and a $1 move on 0.35 lots is $35.
Margin: what you need to open the trade
Margin is the deposit the broker holds while the trade is open. It's the position's value divided by your leverage:
0.10 × 100 × $4,000 ÷ 100 = $400
| Lots | 1:20 | 1:100 | 1:500 |
|---|---|---|---|
| 0.01 | $200 | $40 | $8 |
| 0.10 | $2,000 | $400 | $80 |
| 1.00 | $20,000 | $4,000 | $800 |
Margin decides whether you can open a trade. It says nothing about whether you should. High leverage doesn't change how much a pip is worth; it only lets you open a bigger position with less money down, which makes it easier to oversize.
Choosing a lot size: stop first, size second
The usual mistake is choosing a lot size first ("I always trade 0.10") and then fitting a stop around it. The stop belongs where the trade idea is proven wrong on the chart. Once it's there, the lot size is arithmetic:
Here's what 1% risk works out to for common account sizes and stops. Sizes are rounded down to 0.01; a dash means even 0.01 lot would risk more than 1%.
| Account | 1% risk | 30-pip stop | 50-pip stop | 100-pip stop |
|---|---|---|---|---|
| $500 | $5 | 0.01 | 0.01 | – |
| $1,000 | $10 | 0.03 | 0.02 | 0.01 |
| $2,500 | $25 | 0.08 | 0.05 | 0.02 |
| $5,000 | $50 | 0.16 | 0.10 | 0.05 |
| $10,000 | $100 | 0.33 | 0.20 | 0.10 |
| $25,000 | $250 | 0.83 | 0.50 | 0.25 |
Two things jump out. Under about $1,000, 1% doesn't fit a normal gold stop even at the minimum size, which is why small accounts either risk more per trade, trade cent accounts, or wait. And a wider stop doesn't mean more risk: it means a smaller size for the same money. For your exact numbers, use the lot size calculator; for how much to risk in the first place, read risk per trade on gold.
Cent accounts
Some brokers offer cent accounts where the balance is shown in US cents. A 0.01 "cent lot" is a hundredth of a normal 0.01 lot (0.01 oz), so a $1 move is worth 1 cent. The calculator still works: enter the balance in cents and read the answers in cents too. Mixing cents and dollars is the classic 100× sizing error, so double-check which one your platform shows.
Spot CFDs vs futures
This guide covers spot gold (XAUUSD) as traded through CFDs and spread bets on MT4/MT5 and similar platforms. Exchange futures use fixed contracts instead of decimal lots: COMEX GC is 100 oz ($10 per $0.10 tick) and Micro Gold MGC is 10 oz ($1 per $0.10 tick). The ounces-times-move maths is the same.