2. The Gold Standard: XAU/USD Point Value
Gold is famous for its high volatility. To trade it safely, you must understand the Lot Size. In the Forex world, a "Standard Lot" of Gold typically represents 100 ounces.
Table: XAU/USD Value Breakdown (100-Ounce Contract)
This table assumes a standard contract size of 100.
| Trade Size | Units (Ounces) | Value of a $0.01 Move | Value of a $1.00 Move |
|---|---|---|---|
| 1.00 (Standard Lot) | 100 oz | $1.00 | $100.00 |
| 0.10 (Mini Lot) | 10 oz | $0.10 | $10.00 |
| 0.01 (Micro Lot) | 1 oz | $0.01 | $1.00 |
The Formula for Gold Profit/Loss
Profit/Loss = (Exit Price - Entry Price) × Lot Size × 100
Example: You buy 0.10 lots of Gold at $2,050.00 and sell at $2,055.00.
- Price Difference: $5.00
- Calculation: $5.00 х 0.10 х 100 = $50.00 Profit
3. The Silver Lining: XAG/USD Point Value
Silver is often called "Gold on steroids" because it is much cheaper per ounce but moves much faster in terms of percentage. A standard lot of Silver is usually 5,000 ounces (though some brokers use 1,000—always check your "Contract Specification").
Table: XAG/USD Value Breakdown (5,000-Ounce Contract)
Based on the industry-standard 5,000 unit contract.
| Trade Size | Units (Ounces) | Value of a $0.01 Move | Value of a $1.00 Move |
|---|---|---|---|
| 1.00 (Standard Lot) | 5,000 oz | $50.00 | $5,000.00 |
| 0.10 (Mini Lot) | 500 oz | $5.00 | $500.00 |
| 0.01 (Micro Lot) | 50 oz | $0.50 | $50.00 |
Note: Because of the 5,000-ounce contract size, Silver has a much higher point value per cent than Gold. Always adjust your lot size accordingly to maintain proper risk.
