Lot size
Also called position size, volume. What it means, how it looks on a gold (XAUUSD) chart, and the mistake most traders make with it.
Lot size: Lot size is how much gold you trade. On most brokers 1 standard lot of XAUUSD is 100 ounces, so a $1 move is $100 per lot, $10 per 0.10 lot and $1 per 0.01 lot.
Lot size on a gold chart
Risking $100 with a $10 stop means $10 per $1 of movement, which is 0.10 lot. Our gold lot size calculator does the maths for any balance, risk and stop.
How traders use it
Size every trade from the stop distance, so each loss is the same percentage of the account.
Common mistake
Using the same lot size on every trade. A $5 stop and a $25 stop with the same lot risk very different amounts.
Questions
What does lot size mean in trading?
Lot size is how much gold you trade. On most brokers 1 standard lot of XAUUSD is 100 ounces, so a $1 move is $100 per lot, $10 per 0.10 lot and $1 per 0.01 lot.
How is lot size used on gold (XAUUSD)?
Size every trade from the stop distance, so each loss is the same percentage of the account.
Educational content, not financial advice. Every concept here is a probability, not a guarantee.
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