Looking for gold position size calculator online? Now you got it.
The XAUUSD lot size calculator below help you calculate the recommended lot size for your gold trades using live market quotes, your account equity, risk percentage, and stop loss.
To use the free gold lot size calculator online tool, select your preferred deposit currency, then enter your open and stop loss price (or alternatively switch to stop loss in pips), your account size (balance), and the amount you are willing to risk (in % or USD), then click on Calculate.
Tip: If you are not getting the lot size value. Click on “Calculate lot size in MT4/MT5?” and hit the calculate button again.
What Is Lot Size In Forex?
To effectively use the XAUUSD position size calculator, you must understand that a lot refers to the magnitude of a trade, or the number of currency units that will be bought or sold. 1 Standard Lot = 100,000 base currency units.
To fully understand how gold position size calculator works, see image below.
How To Use Gold Position Size Calculator?
To calculate the perfect lot size with the gold position size calculator, follow the steps with the example given below:
Instrument: You can pick from a wide range of pairs available for gold. Popular gold forex pairs (XAUUSD, XAU/AUD, XAUCHF, XAUEUR, XAUGBP, etc…) OR popular crypto pairs like (XAUBTC). Using the gold lot size calculator tool above, select XAU/USD as example.
Deposit currency: The account base currency is crucial in determining the right lot size since this factor in the pip value and market rate of the chosen pair. For this example, we’ll use USD as our deposit currency.
Stop loss (pips): Here, figure out the number of pips you are willing to risk (or lose) in a trade. This is very important in order to protect your account equity if the market moves against your entry position.
We assume we are buying the market here, therefore we will use the open and close price in the case of gold. Alternatively, you can switch to stop loss in pips. Our open price (entry price) is 1715.266 and close price (stop loss price) is 1680.961.
Account balance: This is very clear, enter your account equity. Going by our example, let’s input $10,000 into the XAUUSD lot size calculator.
Risk: The field is very important to your trading. In this field, you can switch from risk percentage % (e.g 1%, 2%) to amount of your account balance ($10, $20, $50, etc). In this case, we are willing to risk 1% of our account equity here.
Calculate: Now, hot the “Calculate” button.
In this case, we are risking 1% of our account capital of $10,000 (which is $100) on this trade, the recommended lot size would be 2.91 lot.
NEXT: From the result, the calculator displays 2.915 Lots (trade size) which represent 100,000 Units (standard lot trade size of base currency) and finally the money at risk is also displayed which means if we decide to take the trade, the money we are risking here is -$100 if trade goes against us.
More on XAUUSD Position size Calculator
A quick reminder before you start using the free xauusd lot size calculator.
It would be an understatement to say that risk management is crucial for traders. The reality is that it is a key success factor for a traders in the forex market.
One of the most important factors in trading forex successfully is your risk management. Position sizing is very important to managing risk properly in order not to blow your account out of proportion on a single trade.
And this is achievable by using position size, money management calculator to help you control your maximum risk taken on every trade you take.
Important Tip: Proper position sizing and risk management is also often a key differentiator between amateurs and professionals in the world of trading.
Risk Taking Tips For XAUUSD Gold Traders
1: It is highly recommended not to risk more than 2% of your capital or account equity per trade. Following this rule increases your chances of success in your trading endeavors, as well as your ability to recover from earlier losses.
2: Your risk to reward must at least 1:2. Meaning you should only be interested in positions that can give you an opportunity to make at least twice of what you are willing to risk. Sticking to this trading ensures you take quality trades.
Gold Lot Size Calculator XAUUSD [Video]
Calculating your risk rightly is an important winning factor of your money management. The video above explains how to calculate perfect lot sizes for your gold (XAUUSD) trade for maximum profit and minimum risk.
XAUUSD Position Size Calculator Summary
I hope that you found the xauusd position size calcalutor useful?
Just for a quick recap on the gold position size calculator tool. One important thing to keep in mind before using any position size calculator tool in forex is your risk management and capital protection. A risk of 1% of your account equity is ideal, this way you won't over expose your account size to massive risk incase the trade go against you. Exactly the reason why you always use our free gold lot size calculator tool from time to time to help you keep your risk portfolio in check And remember to bookmark this XAUUSD lot size calculator and help share with a friend.
FREQUENTLY ASKED QUESTIONS (F.A.Qs)
What is a position size calculator?
This is one of most valuable tools that enables FX traders to calculate the precise position size for any trade, allowing you to always stay in control of your risk and avoid blowing out your account on a single trade.
How many pips is a lot?
A standard lot is 100,000 units of any currency, whereas a mini-lot is 10,000 and a micro-lot is 1,000 units of any currency. A one-pip movement for a normal lot equals a $10 change.
What risk percentage should I use?
When in doubt, don’t exceed 2% of your account balance. I prefer between 1% and 2% risk to ensure that I can keep my emotions in check.
How do you determine position size?
Divide the account risk by the trade size to find the appropriate position size per trade. This means USD 2000/USD 20 = 100 in our Microsoft example. To put it another way, you can buy 100 Microsoft shares based on your account value and stop-loss level to ensure you don’t lose more than 2% of your total money.
What does 0.01 lot size mean?
A lot is a standard contract size in the currency market. This is equal to 100,000 units of a base currency, therefore 0.01 lots represent 1,000 units of your base money.
How do you calculate portfolio size?
To calculate your portfolio size, divide the dollar value of a security by the total dollar value of the portfolio to get the weight of an individual asset. Alternatibely, you can also divide the number of units of a particular securities by the total number of shares in the portfolio.
How do you manually calculate your position?
The number of lots, type and the size of lot you buy or sell determine the size of your position:
– A micro lot is 1,000 units of a currency.
– A mini lot is 10,000 units.
– A standard lot is 100,000 units.
How many lots can I trade with $100?
Actually, you can trade any feasible trading plan with a $100 account because most brokers let you to trade in micro units or 0.01 lots. You can possibly increase the size of your trading units after you’ve optimized your trading plan and expanded your working capital through productive trading.
What lot size is good for $50 forex account?
Micro lots can be too risky for a $50 account, so I propose you open a nano (cent) account. 1 standard lot equals 1 micro lot in a nano (cent) account, allowing you to trade safely even with $1.
Which lot size is better for beginners?
A micro lot is one thousand units of a base currency equal to one percent of a regular lot (100 000 x 0.01). As a result, you will trade 1 micro lot when you open a trade with a 0.01 lot. Micro lots are the smallest tradable lot offered by most brokers and are an excellent place to start for newcomers.
What lot size is good for $1000 forex account?
If your account is financed in dollars, a micro lot equals $1,000 worth of the base currency you want to trade. One pip is equal to ten cents if you’re trading a dollar-based pair. 2 Micro lots are ideal for beginners who wish to minimize their risk to a bare minimum while learning to trade.
What does a 500:1 leverage mean?
500:1 leverage means you can open a position worth 500 times your capital. That could be advantageous, or it could wipe away your money if the price swings against you by 0.2 percent. There’s no reason to utilize so much power.