Risk management
Gold points and risk sizing without confusion
Why a move from 4000 to 4005 equals 50 points, and how to convert it into monetary risk.
Answer first
What should you remember?
- In AlQANAAS, every $0.10 gold move is counted as one point.
- Define trade invalidation first, then size the position to your risk.
- Gold contract specifications can differ by broker, so verify your symbol before execution.
The points rule
In AlQANAAS, every $0.10 move in gold equals one point. A $5 move therefore equals 50 points, not 500.
From price movement to points
Subtract the starting price from the ending price, use the absolute value, then multiply the dollar difference by 10. A move from 4000.00 to 4005.00 is $5, or 50 points. A move from 4005.00 to 4002.50 is $2.50, or 25 points.
Risk before reward
Define the acceptable monetary loss first, then calculate entry-to-stop distance and the matching lot size. Never distort the stop just to trade larger.
A complete sizing example
A $1,000 balance with 1% risk gives a planned maximum loss of $10. If the stop is $2 away and your broker's standard lot represents 100 ounces, one full lot risks about $200, making the theoretical size 0.05 lot before spread and slippage. Verify the contract specification because brokers can use different symbol settings.
Common mistakes
Do not confuse a point with the smallest quoted decimal, and do not use one fixed lot size for every trade. A wider stop needs a smaller position, while a tight stop is not automatically safer. Allow for execution cost and never raise risk merely to recover a previous loss.
Direct answers
Frequently asked questions
How many points is a one-dollar gold move?
Under the AlQANAAS convention, a one-dollar move equals 10 points because each $0.10 is one point.
Is the monetary point value identical at every broker?
No. Monetary value depends on lot size, contract size and the broker's gold-symbol specification, so check the instrument details before sizing.
Should lot size be chosen before the stop-loss?
Define invalidation and the stop first, then calculate the size that keeps risk within the chosen limit.