Gold is quoted in US dollars per troy ounce. In MetaTrader 5 its symbol is XAUUSD. You always see two prices: the Sell price (bid) and the Buy price (ask). The gap between them is the spread.
One lot is 100 ounces
One standard lot of gold is 100 ounces. So every $1 the price moves is worth $100 on one lot. You can trade smaller sizes too: 0.10 lot is 10 ounces, and a move of $1 is worth $10.
The spread is your first cost
You buy at the higher price and could sell at the lower one, so every new position starts a little behind. On gold our spread is fixed at 20 cents ($0.20) an ounce. On one lot that is 100 × $0.20 = $20; on 0.10 lot it is $2.
Because the spread is fixed, you know this cost before you tap Buy or Sell. It stays the same during the news and on a quiet afternoon.
Margin on gold
Gold uses our fixed margin per lot: $1,000 for each of your first 2 lots. The lesson on margin explains the higher tiers.
Worked example
- You buy 1 lot of XAUUSD: 100 ounces.
- Margin set aside: $1,000.
- Spread cost from the moment you open: $20.
- The price moves $5 in your favour: +$500 on the position.
- The price moves $5 against you: −$500 on the position.
- The same move on 0.10 lot: $50 either way.
Key points
- XAUUSD is gold in US dollars per ounce; one lot is 100 ounces.
- A move of $1 is worth $100 on one lot and $10 on 0.10 lot.
- Our gold spread is fixed at 20 cents: $20 on one lot, known before you trade.
- Every gain or loss is counted on the full position — a larger lot means larger moves both ways.
Try it
Open the trading calculator in your account, choose gold and try different lot sizes: it shows the margin, the spread cost and the value of each move.
Open the calculator