The arithmetic, in full
On XAUUSD a one-point move — 0.01 in price — is worth one dollar on a standard lot of 100 ounces. So a stop of 500 points is 500 dollars on a standard lot, 50 on 0.1, and 5 on 0.01. To risk 100 dollars with a 500-point stop: 100 ÷ 500 = 0.2 lots. That is the whole calculation, and it is the same shape as every other position-size calculation in this course.
Why the number looks wrong
Somebody used to risking one percent on EUR/USD with a 30-pip stop is used to seeing lot sizes near a whole lot. The same one percent on gold with a 500-point stop gives a fraction of that. It feels like a mistake and it is not — the position is smaller because each point costs more and the stop is further away. Increasing it to feel normal is the specific decision that empties gold accounts.
The stop has to be where the idea dies
Because gold moves so far, there is a constant temptation to place the stop close and take the small size — which produces a stop inside the noise and a string of losses on trades that were right. The stop goes beyond the level, and the size is whatever falls out of that. If the resulting size is uncomfortably small, the account is too small for the trade, and the answer is to skip it.
Daily limits matter more here
A daily loss limit is good practice everywhere and close to essential on gold, because two full-sized losses can happen inside an hour. Decide the number before the session — a percentage, written down — and stop when it is hit. The point of writing it down is that gold will offer you a compelling reason to ignore it.
Overnight is a real decision
Gold gaps. It gaps over weekends and it gaps on news that lands while you are asleep, and a stop does not protect against a gap — it fills at whatever the market opens at. Holding a gold position overnight means accepting that the loss can exceed the one you planned. Either size for that possibility or close before the day ends.
In short
| One point on a standard lot | $1 |
|---|---|
| Lots | Risk ÷ (stop in points × point value) |
| Stop | Beyond the level, never inside the noise |
| Daily limit | Written down before the session |
| Gaps | A stop does not protect against them |
Common questions
What lot size should I use on gold?
The one that falls out of your risk and your stop. There is no fixed answer, and any number given without knowing your stop distance is a guess with your money.
Can I use the same stop as on EUR/USD?
No. The same distance in price terms is a fraction of a normal gold candle, so it gets hit by ordinary movement. The stop follows the level, not the habit.
Is it safe to hold gold over the weekend?
It is a decision, not a default. Gold can open far from where it closed, and the stop will not save you there. Smaller size, or flat by Friday.
Trading forex and CFDs on margin carries a high level of risk. Most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade.