Work in ounces first
With a hypothetical $50 risk budget and an $8 stop distance per ounce, the starting calculation is $50 ÷ $8 = 6.25 ounces before costs.
VCM / TRADING GUIDES
Gold Position Size Worked Example
Position size connects a cash risk budget to the price distance between a hypothetical entry and stop.
Convert to the broker’s lot size
If the broker defines one lot as 100 ounces and allows 0.01 lot steps, 0.06 lot is six ounces. That implies $48 of price-move risk before costs. Verify the actual contract specification and volume step.
Allow for costs and gaps
Commissions, currency conversion and slippage can increase realized loss. If the minimum trade size exceeds the risk budget, the inputs do not support the trade at that size. A stop price is an instruction, and the execution price can differ.
Continue your research
XAU/USD Trading Hours and Session Breaks
Check your broker’s gold trading hours, daily breaks, holidays and platform timezone.
How to Calculate the XAU/USD Spread
Calculate the gap between the gold bid and ask and convert it to a cash cost for your position size.
Risk-to-Reward Ratio With a Worked Example
Calculate planned trade risk, potential reward and the break-even win rate before costs.
Risk and drawdown calculators
Calculate a risk budget and explore the gain required to recover from a loss.
PREPARE YOUR ENQUIRY
Make the first conversation useful.
- What are the symbol’s contract size and smallest volume step?
Published by Vertex Capital Markets. General information, not personalized advice. Trading can result in substantial losses. Scope and service availability require confirmation.