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Lot size calculator (gold and forex)

By Saad El Soussi, UAE-authorized finfluencer · Updated 2026-11-08

Your lot size is the position that makes your maximum loss on the trade equal to the amount you chose to risk. Lot size = risk amount ÷ (stop loss distance × value of one unit of movement per lot). On most platforms one lot of gold is 100 ounces, so every $1 move is $100 per lot; one standard lot of a USD-quoted pair like EUR/USD is 100,000 units, so one pip is $10 per lot. Check your broker's contract specification if yours differs.

Instrument Account balance (USD) Risk per trade (% of the account) Stop loss distance in US dollars of gold price (5 = five dollars between entry and stop)

The formula

Lot size = risk amount ÷ (stop loss distance × value per unit of movement per lot)

Risk amount = account balance × risk per trade. With $5,000 and 1%, that is $50.
Stop loss distance = the gap between your entry price and your stop loss, in dollars for gold or in pips for a currency pair.
Value per unit per lot = what one dollar of gold movement, or one pip, is worth with one lot. Gold: $100 per $1 per lot (1 lot = 100 oz). USD-quoted pairs: $10 per pip per standard lot (100,000 × 0.0001).

Not sure what stop distance to enter? See stop loss: where to place it, with how often gold hit stops of $5 to $100.

Worked examples

Gold

Account $5,000, risk 1% = $50. You buy gold and place the stop $5 below your entry. One lot moves $100 for every $1, so the stop costs $5 × $100 = $500 per lot. Lot size = 50 ÷ 500 = 0.10 lots (10 ounces). If the stop is hit you lose $50, as planned. Had you traded 1 lot because the leverage allowed it, the same stop would have cost $500, a tenth of the account, on one trade.

EUR/USD

Same account and risk, stop loss 25 pips. One pip is $10 per standard lot, so the stop costs 25 × $10 = $250 per lot. Lot size = 50 ÷ 250 = 0.20 lots (two mini lots). A 25-pip loss at 0.20 lots is 25 × $2 = $50.

A wider stop, same risk

If the market is volatile and your gold stop has to be $15 instead of $5, the lot size falls to 50 ÷ (15 × 100) = 0.03 lots. The risk stays $50; only the size changes. That is the whole point: the stop loss is set by the chart, the lot size is set by the stop.

What a lot is

Size	Units of a currency pair	Value of 1 pip (USD-quoted pair)	Gold on most platforms
Standard lot (1.00)	100,000	$10	100 oz: $100 per $1 move
Mini lot (0.10)	10,000	$1	10 oz: $10 per $1 move
Micro lot (0.01)	1,000	$0.10	1 oz: $1 per $1 move

A pip is 0.0001 for most pairs and 0.01 for pairs with the Japanese yen. For pairs not quoted in US dollars (for example EUR/GBP or USD/JPY) the pip value in dollars depends on the exchange rate of the quote currency; your platform shows it in the contract specification, and you can enter it in the calculator above under "other pair". Contract sizes for gold also vary between brokers, so check yours once and note it down.

Why 1% per trade

Losing streaks happen to every trader. Ten losses in a row at 1% risk cost 1 − 0.99¹⁰ = 9.6% of the account, and you keep trading. The same ten losses at 10% risk cost 1 − 0.90¹⁰ = 65%, and the account is effectively finished. The number you choose is yours, but it should survive a bad month.

Margin is not risk

Margin is the deposit your broker locks to open a position; risk is what you lose if your stop is hit. With 20:1 leverage on gold, 0.10 lots at $4,000 an ounce needs 10 × 4,000 ÷ 20 = $2,000 of margin, but your risk on that trade is still only the $50 set by your stop. Size by risk, then check that the margin fits comfortably in the account; never the other way round. The margin calculator shows the margin, margin level and free margin for any leverage.

Watch the live gold price to see how far gold moves in a day, and read how to trade gold for where to put the stop in the first place. For currency pairs, get the pip value from the pip value calculator first, and check the result of a planned trade with the profit calculator.

See position sizing in real trades

Every gold trade we send to VIP members has an entry, a stop loss and targets, and we publish the week's results in our public Telegram channel, losing trades included. Open our bot to ask questions. It answers in English.

Open the SesTrading botOn Telegram

Questions people ask

How do I calculate lot size for gold?

Lot size = risk amount ÷ (stop loss distance in dollars × 100), because one lot of gold is usually 100 ounces and moves $100 for every $1. With $50 of risk and a $5 stop: 50 ÷ 500 = 0.10 lots.

What is a good risk percentage per trade?

There is no single answer, but many traders use 1% or less so that a normal losing streak cannot do lasting damage. Ten losses in a row at 1% cost 9.6% of the account.

What is the difference between lot size and leverage?

Lot size is how much you trade; leverage is how much of it the broker lets you borrow. Leverage decides the margin you need, not the money you lose. Your stop loss and lot size decide that.

Why does my platform show a different result?

Contract sizes and pip values differ between brokers and account currencies. Check the contract specification of the symbol on your platform and enter its pip value under "other pair" in the calculator.

Authorized in the UAESaad Nizar El Soussi, founder of SesTrading, is listed by the UAE Capital Market Authority as an authorized finfluencer (entry 193, added 24 September 2026). Check the official list.