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How to trade gold (XAU/USD)

A plain, practical guide for traders in India — lots, leverage, margin, costs and the risk rules that keep beginners in the game.

xau/usd · one bar, one hourTARGETENTRYSTOP
A plan is three prices decided before the entry, not after.

Gold (XAU/USD) is traded as a CFD — you speculate on the price, you don't own the metal or coin. One standard lot is 100 oz.

Lots, leverage and margin

Margin is what your broker locks to open a position: (lots × 100 × price) ÷ leverage. At 1:200 a 0.10 lot needs $213.75. Use the margin calculator.

Size to a fixed risk

Decide the money you'll lose at your stop first, then let the position-size calculator pick the lot. Never size by how much margin you have.

A first gold trade, in the order the steps actually happen.A first gold trade, in the order the steps actually happen.01Decide the loss youacceptIn money, before thechart. Everything elsefollows.02Find where the ideais wrongThat price is the stop— not a round number.03Let the size becalculatedRisk divided by stopdistance, in lots.04Check what it locksMargin at Up to 1:200;up to 1:500 foreligible traders afterexperience/financialassessment., which is amaximum and varies.05Count the costSpread on entry, swapfor every night held.
A first gold trade, in the order the steps actually happen.

Costs

You pay the spread on entry and an overnight swap if you hold. Factor both into every trade.

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FAQ

Common questions

What are the actual steps of placing a first gold trade?

The steps are: decide direction and a reason, pick your stop distance in pips, size the position from that stop, then enter with the stop attached. On XAU/USD one pip is 0.01, so a 200-pip stop on 0.10 lots is a defined rupee loss. Use our position size calculator before you click buy or sell.

Where should I put my stop loss on a gold trade?

Put the stop where your trade idea is proven wrong, not at a round rupee amount you are comfortable losing. On gold, that is usually beyond a recent swing high or low, allowing for normal noise. Then size the position so that stop distance equals a fixed small percentage of your account. Our position size calculator converts the stop into lots.

Should I trade gold during the Indian session or the US session?

It depends on your strategy, but most XAU/USD liquidity and movement arrives during US hours, which is late evening in India. The Indian session is quieter and can drift. If you cannot watch late screens, use resting orders with stops rather than monitoring intraday. Check our pivot points calculator to see where the session levels sit.

How do I calculate profit on a gold trade?

Profit equals the price change in pips multiplied by pip value and lot size. With 1 standard lot at 100 oz and a pip of 0.01, each pip is worth $1 per lot, so 0.10 lots makes 100 pips worth about $10 before costs. Our profit calculator does the conversion, including the rupee view.

What order type should I use for my first gold trade?

Use a market order with an attached stop loss for your first trade, because it forces you to define risk at entry. Limit orders are useful later when you want a specific price, but they can leave you filled without a stop if you forget. Practise the full sequence, entry plus stop, on a demo until it is routine.