Execution and risk
XAUUSD lot size, spread and slippage explained
Understand gold move value, spread and slippage, and calculate lot size from risk rather than copying another account.
Answer first
What should you remember?
- Contract specifications can differ by broker.
- Spread and slippage belong in real risk.
- Size follows stop distance and acceptable loss.
Gold contract specifications
A standard lot often represents 100 ounces, but symbol, contract size and minimum tick can differ across brokers and account types. Check the instrument specification inside your broker platform before using any calculator; never copy point value from another broker without verification.
Spread and transaction cost
A buy opens at ask and is valued for exit at bid, so it begins roughly one spread negative. Spreads can widen around news and thin liquidity, making a tight stop impractical even when the price thesis is sound.
Slippage and gaps
A stop requests an exit at its trigger, but fast markets or gaps may fill at the next available price. Execution cannot always be guaranteed. Smaller size and avoiding unmanageable events matter more than assuming a stop removes all risk.
Position sizing sequence
Set the acceptable monetary loss, measure entry-to-stop distance in dollars, then use your contract's move value. Allow for cost and slippage before calculating size. If the broker's minimum size still exceeds your risk, skip the trade.
Direct answers
Frequently asked questions
Is 0.01 lot always safe?
No. Safety depends on balance, stop distance and contract specification—not lot size alone.
Why does gold spread widen around news?
Volatility and uncertainty rise while available quotes can thin, causing liquidity providers to widen bid-ask spreads.