How Much Is 1 Lot of XAUUSD (Gold)? Required Margin and Stop Out Levels

This article explains the size of 1 lot and how to calculate the required margin for XAUUSD at EdgeGraph FX. With concrete figures, you can check how many lots you can open at each capital level and how many dollars the gold price has to fall to reach a stop out.

To state the conclusion first, 1 lot of XAUUSD is 100 ounces. If the gold price is $4,000 per ounce, the trade value of 1 lot is $400,000.

However, you do not need to prepare this full amount. Because leverage is applied, you can trade even with a small amount of funds on hand.

XAUUSD Is the Name of Gold on MT5

Gold is listed in the MT5 Market Watch under the symbol name XAUUSD. XAU stands for gold and USD for the US dollar, so it shows how many dollars one ounce of gold costs.

The trading platform at EdgeGraph FX is MetaTrader 5. When you trade gold, you place orders from the same screen as currency pairs.

How to place orders in MT5 and how to set up closing and stop losses are explained in the article below.

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1 Lot of XAUUSD Is 100 Ounces

You buy or sell the number of ounces of gold equal to the lot size multiplied by 100. 0.5 lots is 50 ounces, and 2 lots is 200 ounces.

The order size ranges from a minimum of 0.01 lots to a maximum of 100 lots. If you want to try it with a small amount, you can open a position from 0.01 lots.

What Is the Trade Value of 1 Lot? About ¥60 Million

Here we calculate with $4,000 per ounce and ¥150 to the dollar.

The trade value is $4,000 × 100 ounces = $400,000. In yen, that is about ¥60 million.

How to Calculate the Required Margin for XAUUSD

Formula for the required margin

The required margin is calculated as rate × trade size ÷ leverage.

XAUUSD at EdgeGraph FX has a maximum leverage of 1,000x. Dividing the $400,000 trade value of 1 lot by 1,000 gives a required margin of $400.

In yen, that is about ¥60,000. Because the margin needed is small, the number of lots you can open with the same funds becomes larger.

Required Margin by Lot Size

With the minimum of 0.01 lots, the margin you need is about ¥600. If you want to get a feel for how much the price moves first, you can start with this size.

How leverage itself works is explained in detail in this article.

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How Many Lots You Can Open at Each Capital Level

Even with the same funds, the number of lots you can open changes a lot depending on how much of your margin you use.

When you open up to the calculated maximum

The calculated maximum is the state where all the funds in your account are used up as required margin. Right after opening, the margin level is 100%, and it falls from there by the amount of unrealized loss. The amount you can open on paper and the amount you can keep holding are two different matters.

If you keep a 500% margin level

This means keeping five times the required margin in your account. For example, even if the gold price moves suddenly on an economic data release, a margin level with room to spare gives you a wider price range before reaching the stop out. Decide first how much unrealized loss you can tolerate, and then choose the lot size.

If you want to know how to set the loss per trade from your stop-loss distance and calculate the lot size, check out the article below!

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The spread becomes an unrealized loss right after you open

The calculations so far do not include the spread. In practice there is a difference between the buy and sell prices, so a position starts out with an unrealized loss already attached the moment it is opened.

Since 1 lot is 100 ounces, the spread multiplied by 100 becomes the unrealized loss right after opening, as is. With a spread of $0.30, that is $30, or about ¥4,500. For 0.1 lots, it is $3, or about ¥450.

The spread at EdgeGraph FX is variable and changes depending on trading hours and market conditions. Before placing an order, check the current figure in the MT5 Market Watch.

Also, holding a position overnight incurs swap points. If you plan to hold for several days, it is safer to leave some room in your margin for them as well.

How Many Dollars Does Gold Have to Move Before a Stop Out?

A stop out occurs at a margin level of 20%

At EdgeGraph FX, a stop out occurs when the margin level falls below 20%. Your open positions are closed and the loss is locked in at that point.

Note that for trading in line with the terms, even if the market moves sharply and your account balance goes negative, you will not be asked to deposit additional funds.

When you open 1 lot with ¥100,000 of capital

When you open 1 lot, the margin level starts at about 166%. The unrealized loss it takes to go from there to a stop out is ¥88,000. Every $1 move in the gold price changes the profit or loss on 1 lot by ¥15,000. For 0.1 lots, it is ¥1,500.

If the gold price moves against you by about $5.8, you reach this ¥88,000. If gold bought at $4,000 falls to about $3,994, the stop out occurs there. (*Converted at ¥150 to the dollar)

The price range when you reduce the lot size

With the same funds, if you drop down to 0.1 lots, you can withstand an adverse move of about $65.8.

How a negative account balance is handled is covered in the article on negative balance protection.

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FAQ

Summary

1 lot of XAUUSD is 100 ounces, and at 1,000x leverage the required margin is $400. By multiplying by the number of lots, you can calculate the funds you need yourself.

However, if you decide the lot size by looking only at the required margin, then with ¥100,000 of capital the answer is 1 lot. In that case, a stop out occurs once the gold price falls by about $5.8. A move of around $5 is not unusual for gold.

Decide the lot size not from the maximum that the required margin allows, but by working backward from how much adverse movement you want to withstand. Leveraged trading involves risk, so we recommend managing your funds carefully on your own. You can also start with a demo trade to get a feel for the market before moving on to live trading.

If you want to know the tax return steps after making a profit, check this article!

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