HOW TO CALCULATE PIPS IN GOLD (XAUUSD)

On gold (XAUUSD), a "pip" is not standardised the way it is on currency pairs — most brokers treat either $0.01 or $0.10 as one point of movement, so the first step before calculating anything is confirming your own broker's convention.

Two common conventions

• $0.01 movement = 1 point — under this convention, gold moving from $2,300.00 to $2,301.00 is a 100-point move.
• $0.10 movement = 1 pip — under this convention, the same $1.00 move is a 10-pip move.

Neither is "correct" — brokers simply differ in how their platform displays gold's price and how many decimal places it quotes. Check your platform's contract specification page or ask your broker's support directly before sizing any trade.

Contract size and pip value

Most brokers set the standard XAUUSD contract size at 100 troy ounces per lot. That means for a $1.00 move in the gold price:

• 1 standard lot (100 oz) gains or loses $100 for every $1.00 move in price.
• 0.10 lot (10 oz) gains or loses $10 for every $1.00 move.
• 0.01 lot (1 oz) gains or loses $1 for every $1.00 move.

From there, the pip value depends entirely on how large a "pip" is defined as on your platform. If your broker treats $0.10 as one pip, then on a standard lot one pip is worth $10; if it treats $0.01 as one point, one point on a standard lot is worth $1.

Worked calculations

These figures assume a broker where 0.01 lot moves $1 for every full $1.00 change in gold's price — always verify the exact figure with your own broker, since contract sizes and quoting conventions can differ.

Common mistakes

• Assuming gold's pip value is the same as a currency pair's — it is not, because gold is priced in dollars per ounce, not as an exchange rate.
• Confusing points and pips when reading someone else's trade recap without checking which convention they use.
• Sizing a gold position using a forex position-size formula built for a 0.0001 pip without adjusting for gold's larger price increments.
• Not checking whether the broker's "pip" is $0.01 or $0.10 before setting a stop loss in pips.

Use a calculator instead of doing it by hand

Because conventions vary by broker, the safest approach is to use our free pip calculator at /tools/pip-calculator, which lets you enter your broker's contract size and price move to get an exact pip value rather than relying on assumptions.

A realistic risk note

Misreading gold's pip value is one of the most common ways beginners take on far more risk than intended. Always confirm the exact contract specification with your broker and double-check the resulting position size before entering a live trade.