Everything about position sizing
Calculating the correct lot size is the foundation of every professional risk management approach. The calculator applies a straightforward, transparent formula so you know exactly how much you are risking on each XAUUSD trade.
How does the calculator work?
The calculator uses the formula: Lot Size = (Balance × Risk%) / (Stop Loss in points × Point value per lot). For XAUUSD on a Standard account, 1 point of movement equals $1 per lot (100 oz). The calculator automatically adjusts the point value based on the account type you select (Standard, Mini or Micro).
What is position size?
Position size (lot size) determines how many units of an asset you buy or sell in a trade. In XAUUSD, one standard lot equals 100 ounces of gold. A correct position size ensures that if price reaches your Stop Loss, you only lose the percentage of your account you decided to risk — no more, no less.
Why is it important to calculate the lot size?
Risk management is what separates a professional trader from a gambler. Without calculating the correct lot size, you may risk too much on a single trade and blow your account, or risk too little and miss opportunities. Institutional traders never open a position without knowing exactly how much they are risking — neither should you.
What risk per trade should I use?
Most professional traders risk between 1% and 3% of their capital per trade. 2% is the industry standard. With a 2% risk, you would need 50 consecutive losing trades to wipe your entire account — statistically almost impossible with a proven strategy.
The formula we use
Lot Size = (Balance × Risk%) / (Stop Loss in points × Point value per lot). For XAUUSD, 1 point of movement equals $1.00 per lot on a Standard account (100 oz), $0.10 on a Mini (10 oz) and $0.01 on a Micro (1 oz). Risk in dollars is calculated as Balance × (Risk% / 100), and the resulting pip value is Lot × Point value per lot.
Receive signals with the lot size already calculated
Our institutional AI publishes XAUUSD signals with entry, SL, 3 TPs and the recommended lot size based on your risk profile. In real time, straight to Telegram.
⚠️ Risk warning: This content is exclusively educational and does not constitute personalised financial advice. Trading forex and CFDs carries a substantial risk of capital loss. Past results do not guarantee future returns. Never trade with money you cannot afford to lose.