Short answer
There's no single definition. On a gold price quoted to two decimals, MetaTrader calls a 0.01 move a point, many traders call a 0.10 move a pip, and some call a USD 1.00 move a pip. The money is the same whatever the name: on one standard lot of 100 ounces, a 0.01 move is worth USD 1, a 0.10 move USD 10 and a 1.00 move USD 100.
What is a $1 move in gold worth?
4,050.00 4,051.00 +$1.00
Gold moves from 4,050.00 to 4,051.00
- 1.00
- 0.50
- 0.10
- 0.01
On this page
Why gold pip answers conflict
On currency pairs, a pip is a fixed convention: the 4th decimal on most pairs, the 2nd on yen pairs. Gold has no equally settled convention, so different sources use different units:
- 0.01 (one cent) is the smallest step on a two-decimal gold quote. Many education sites call this a gold pip. MetaTrader calls it a point.
- 0.10 (ten cents) is called a pip by many traders and some tools. FX Blue, a widely used trading-analytics service, defines a gold pip as 0.10 in its own FAQ.
- 1.00 (one dollar) is called a pip in some trading communities, especially in videos and chat groups.
None of these is wrong. The problem comes when someone says “my stop was 50 pips” and the listener assumes a different unit: that could mean a USD 0.50, USD 5.00 or USD 50.00 move in the price.
The three definitions side by side
Assuming the usual contract size of 100 ounces per standard lot:
| If 1 pip means a move of | Value per 1.00 lot (100 oz) | Per 0.10 lot (10 oz) | Per 0.01 lot (1 oz) | A USD 5.00 price move is |
|---|---|---|---|---|
| 0.01 | USD 1 | USD 0.10 | USD 0.01 | 500 pips |
| 0.10 | USD 10 | USD 1 | USD 0.10 | 50 pips |
| 1.00 | USD 100 | USD 10 | USD 1 | 5 pips |
Look at the last column. The price moved by the same USD 5.00 in every row, and the money gained or lost is the same too. Only the label changes.
The formula that works with any definition
Skip the word “pip” and use the price move in dollars:
Gain or loss = price move in dollars × lots × contract size
With a contract size of 100 ounces, that is price move × lots × 100, or simply price move × ounces.
- A USD 3.50 move on 0.20 lots: 3.50 × 0.20 × 100 = USD 70.
- A USD 0.80 move on 0.05 lots: 0.80 × 0.05 × 100 = USD 4.
A worked XAUUSD example
These are example prices, not a trade idea. You sell 0.05 lots of XAUUSD at 4,012.40, with a stop loss at 4,019.90 and a take profit at 3,997.40.
Step 1: the position in ounces. 0.05 × 100 = 5 ounces.
Step 2: the distances in dollars.
- To the stop: 4,019.90 − 4,012.40 = USD 7.50
- To the target: 4,012.40 − 3,997.40 = USD 15.00
Step 3: the same distances in each “pip” unit.
| Distance | In 0.01 units (points on a 2-decimal quote) | In 0.10 pips | In 1.00 pips |
|---|---|---|---|
| To the stop, USD 7.50 | 750 | 75 | 7.5 |
| To the target, USD 15.00 | 1,500 | 150 | 15 |
Step 4: the money.
- If the stop is hit: 7.50 × 5 oz = loss of USD 37.50
- If the target is hit: 15.00 × 5 oz = gain of USD 75.00
- If the spread were 0.25 (an example): 0.25 × 5 oz = USD 1.25 paid on entry
The answer in dollars is the same however you count pips. The units only matter when you type a distance into a platform field.
Points in MetaTrader: where mistakes happen
MetaTrader measures some distances, such as trailing stops and the deviation setting, in points, the smallest price step for that symbol:
- If gold is quoted with two decimals (4,012.40), one point is 0.01, so 500 points is a USD 5.00 move.
- If gold is quoted with three decimals (4,012.405), one point is 0.001, so 500 points is only a USD 0.50 move.
A trader who copies “500 points” from a video made on a different broker can end up with a stop ten times tighter, or looser, than intended. Count the decimals in your own quote, or check the Digits line in the symbol’s Specification window.
When the contract size isn’t 100 ounces
Most brokers use 100 ounces per standard lot for XAUUSD, but not all, and some offer smaller gold contracts. The Specification window shows the contract size. If it differs, replace 100 in the formula:
Gain or loss = price move × lots × contract size
On a cent account where one cent lot equals 0.01 standard lots, one cent lot is 1 ounce, so a USD 1 move is worth USD 1 (100 USC) per cent lot.
Gold pip value in naira, shillings or rand
Your results come out in US dollars. To see them in local money, multiply by the exchange rate you got on your last deposit. If a USD 5 move on your position costs USD 25, that is USD 25 converted at your rate, a quick way to check whether the size suits your budget.
Avoiding mistakes
- Talk about gold moves in dollars of price, not pips, when you plan a trade.
- Check the contract size and decimals in your platform before your first gold trade.
- Use the gold lot size calculator, which asks for the stop distance in dollars and sidesteps the pip question.
- Practise on a demo account: open 0.01 lots and watch how much your equity changes for each USD 1 move.
For currency-pair pips, see what is a pip. For the gold symbol itself, see what is XAUUSD.
Common questions
How many dollars is 1 pip in gold?
On one standard lot (100 ounces): USD 1 if a pip means a 0.01 move, USD 10 if it means 0.10, and USD 100 if it means 1.00. On 0.01 lots (1 ounce) divide each figure by 100.
How many points is 1 pip in gold?
On a gold price shown with two decimals, one point is 0.01, so a 0.10 pip is 10 points. If your platform shows three decimals, one point is 0.001 and a 0.10 pip is 100 points. Check the decimals in the symbol specification.
How much is 1 pip in gold on 0.01 lot?
0.01 lots is usually 1 ounce, so a 0.01 move is worth USD 0.01, a 0.10 move USD 0.10 and a USD 1.00 move USD 1.
What is 100 pips in gold?
It depends on the definition in use: a USD 1.00 price move if a pip is 0.01, or a USD 10.00 move if a pip is 0.10. Ask anyone quoting gold in pips which definition they mean, or convert to dollars of price movement.